SunPower Corp., a manufacturer of solar cells, solar panels and solar systems, has signed a definitive agreement to acquire Tenesol SA, a global solar provider headquartered in La Tour de Salvagny, France. Tenesol, a wholly owned subsidiary of Total SA, has operations in 18 countries and solar panel manufacturing facilities in France and South Africa.
Under the terms of the agreement, SunPower will acquire Tenesol from Total for $165.4 million in cash.Â Concurrently with the closing of the acquisition, Total has agreed to purchase 18.6 million shares of SunPower common stock in a private placement at $8.80 per share, a 50% premium to SunPower's Dec. 22, closing price.Â
The transaction has been approved by an independent committee of SunPower's board of directors and is expected to close early in 2012 following the satisfaction of customary closing conditions, according to the companies. After the sale of Tenesol, Total will own approximately 66% of SunPower's common shares.
‘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,’ says Tom Werner, president and CEO of SunPower.Â