SunPower Corp. has announced an agreement to acquire SunRay Renewable Energy, a Malta-based solar power plant developer, and its project pipeline of photvoltaic projects of 1,200 megawatts, for about $277 million.
SunPower, a San Jose-based, is buying SunRay from its shareholders, including management and private equity firm Denham Capital, for $235 in cash and $42 million in a letter of credit and promissory notes.
SunPower does not plan to raise equity capital to finance the deal and has retain J.P. Morgan Securities as exclusive financial adviser.
Howard Wenger, president of SunPower’s utilities and power plants business group, said
SunRay has a proven track record of developing bankable solar power plants in a complex environment.
SunRay’s pipeline includes projects at different stages of development in Italy, France, Israel, Spain, the United Kingdom and Greece. Denham Capital made an initial commitment of $200 million to the company, according to its Web site.
SunPower has been increasing its presence in Europe in recent years, with more than 200
Megawatts of solar power plants operating there.