MEMC Electronic Materials Inc. and its solar energy subsidiary, SunEdison, have entered into a definitive agreement to acquire privately held Fotowatio Renewable Ventures Inc. (FRV U.S.), the U.S. subsidiary of solar project developer Fotowatio Renewable Ventures.
MEMC says it will pay $112 million at closing, 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 inter-company loans and capital contributions at closing. The agreement also includes an additional deferred payment of up to $103.6 million should FRV U.S. achieve certain performance targets.
‘The acquisition of this solar power leader brings capabilities and a portfolio of solar power projects which are highly complementary to our existing operations,’ says Carlos Domenech, president of SunEdison and executive vice president of MEMC.
FRV U.S.'s solar portfolio includes 42 MW in operation in the U.S. and 28 projects currently in various stages of development, providing SunEdison with up to 1.4 GW of solar projects in the U.S., according to the companies. The FRV U.S. staff of 50 employees will remain in northern California and will report to MEMC's SunEdison subsidiary.Â
The acquisition is expected to close in the third or fourth quarter of this year, subject to customary closing conditions.