MEMC Electronic Materials and its SunEdison unit have reached a definitive agreement to buy privately-held Fotowatio Renewable Ventures, the 100%-owned US subsidiary of solar project developer/operator/owner, Fotowatio Renewable Ventures. When the deal closes, MEMC will pay $112 million plus repayment of approximately $22.9 million in intercompany loans and capital contributions.
The final purchase price is subject to adjustment based on the actual amount of intercompany loans and capital contributions at closing. The agreement also includes an additional deferred payment of up to $103.6 million should FRV US achieve certain performance targets.
The acquisition is expected to close in the third or fourth quarter, subject to customary closing conditions, including the receipt of regulatory approvals.
The FRV US PV portfolio features 42MW in operation in the US, including the 14MW power plant at Nellis Air Force Base. The company's solar portfolio also includes 28 projects in various stages of development, which could provide SunEdison with up to 1.4GW of solar projects in the United States. The FRV US staff of 50 employees will remain in Northern California and will report into MEMC's SunEdison subsidiary.
As part of MEMC's second-quarter earnings report, SunEdison was said to have ended the period with a total pipeline of 2.5GW. As of June 30, 160MW of the pipeline was under construction, compared to 105MW at the end of the previous quarter.