TotalEnergies to acquire SunPower’s CIS business in $250m deal

TotalEnergies has agreed to acquire the commercial and industrial solutions (CIS) business of SunPower Corp., a California-based distributed generation storage and energy services provider, for up to $250 million.

The consideration includes an earn-out of $60 million, which will be contingent on regulatory evolution.

TotalEnergies holds a majority stake of 50.83% in SunPower, which is engaged in providing solar technology and energy services.

The French energy company said that the acquisition is another stage in its roadmap for developing its distributed generation business. Presently, TotalEnergies’ distributed generation business stands at nearly 500MW in operation globally.

Furthermore, the acquisition of SunPower’s commercial and industrial solutions business is said to enable TotalEnergies to expand its distributed generation business footprint to the US and for developing an additional capacity of more than 100MW per year.

TotalEnergies also expects the acquired business to create synergies with its large-scale solar energy portfolio in the US and help B2B customers benefit from more wide-ranging energy solutions and new capabilities in financing as well as project ownership.

TotalEnergies to acquire SunPower’s commercial and industrial solutions business in $250m deal. Photo courtesy of PublicDomainPictures from Pixabay.

Vincent Stoquart — TotalEnergies Renewables senior vice president said: “With this acquisition, TotalEnergies is further investing to grow its distributed generation activity in the U.S. and support its B2B customers in meeting their sustainable development goals.

“It is a new milestone in our renewable development in the country, where we are targeting 4 gigawatts of solar capacity by 2025.”

For SunPower, the sale comes after a previous announcement in October 2021 that it would concentrate on its high-growth residential business.

Peter Faricy — CEO of SunPower said: “TotalEnergies is the ideal partner for our CIS business to take advantage of the growing commercial market and opportunities like community solar and front-of-meter storage.

“The sale enables SunPower to focus on creating a superior residential experience, increase our investment in product and digital innovation, and reach more homeowners. The enhanced strategic clarity created by this transaction will help SunPower lead the industry and deliver maximum value to our investors, partners and customers.”

The deal, which is subject to the meeting of customary closing conditions, is expected to be wrapped up early Q2 2022.