A highly anticipated deal expected since Total bought a majority share holding in SunPower earlier this year, should be completed in early 2012. SunPower is to acquire module manufacturer, Tenesol from Total for US$165.4 million in cash. Ownership of Total in SunPower will increase to 66% as part of the transaction. SunPower noted that the acquisition would positively affect its financial position in 2012.
Tenesol was said to have generated revenue of €240 million in 2010 and was projected to record revenue of approximately €200 million in 2011. Tenesol is also a leading BIPV specialist and off-grid proponent in developing countries.
“Our acquisition of Tenesol is another step toward differentiating ourselves in the competitive solar market, further expanding our downstream presence and benefiting from the strong backing of Total,” noted Tom Werner, SunPower president and CEO. “We said on day one that the partnership with Total would provide strength to our balance sheet, access to new markets and investment in research and development. In six short months, we have seen these benefits accrue to SunPower.”
“Combining the activities of Tenesol with SunPower is a step forward in Total's strategy to become a world player in the promising solar industry,” said Philippe Boisseau, president, Total Gas and Power Division. “SunPower brings the world's highest efficiency, highest reliability technology to market with guaranteed performance. Tenesol's well-established channels, manufacturing base and complementary global footprint will help expand SunPower's market reach and accelerate its share gain during market consolidation.”
SunPower also noted that Total had agreed to undertake negotiations for several additional agreements with SunPower related to directly investing in SunPower's research and development activities as well as developing the first initial, full-scale, commercial concentrator power plant with the SunPower C7 Tracker and purchasing 10MW of SunPower products for the development of projects worldwide.