US solar wafer manufacturer MEMC and subsidiary SunEdison have reached a definitive agreement to acquire photovoltaic factory builder Fotowatio Renewable Ventures' (FRV) US division. It will pay $122m for the acquisition and repayments of $22.9m in intercompany loans and capital contributions. The final purchase price is subject to adjustments based on the actual figure for intercompany loans and capital contributions at closing. The deal also includes deferred payment of up to $103.6m if FRV meets certain performance criteria.
Carlos Domenech, executive vice president of MEMC, said, 'The acquisition of this solar power leader brings capabilities and a portfolio of solar power projects which are highly complementary to our existing operations. The addition of FRV US represents the potential to capture a leading position in the US utility market. An experienced, well-respected US utility development team will be joining our SunEdison business, which will help to drive innovation and growth, as well as enhance and support our capabilities in serving our customers.'
Mark McLanahan, senior vice president, added, 'Our company and pipeline have grown significantly during the past two years. We are now entering the next stage of growth. Industry-leading MEMC has the upstream capabilities and overall platform to support our current pipeline, and will allow us to accelerate our already rapid rate of growth. Our team is excited by this opportunity and looks forward to continued success.'
MEMC recently partnered with JA Solar to build a new factory in China and in March sold senior debt notes worth $550m.