Canadian Solar to acquire Recurrent Energy from Sharp
Guelph, Canada - Canadian Solar Inc. announced that it has entered into a definitive agreement with Sharp Corporation to acquire Recurrent Energy, LLC, a North American solar energy developer, for approximately $265 million.
The transaction further expands Canadian Solar's position as a leading solar energy developer, with a globally diversified project pipeline in low risk geographies. In addition, this transaction broadens Canadian Solar's project development and financing capabilities, and enhances the Company's position for creating its own Yield-Co in the quarters ahead.
"The acquisition of Recurrent is an important milestone for us as it significantly expands and strengthens our position in the North American market, and places Canadian Solar firmly among the leading global solar energy companies," said Dr. Shawn Qu, Canadian Solar Chairman and Chief Executive Officer. "By combining Canadian Solar's global reach and experience with Recurrent's proven solar energy development track record in the US and Canada, we are significantly expanding the scale of our solar energy development platform. At the same time, this transaction broadens our strategic options to extend our business model from development and construction into potential ownership and operation of solar power plants as we work to create additional value for our shareholders."
"Canadian Solar is a key player in the industry and we are fortunate that our collective visions for the future of the solar market are very much aligned," said Arno Harris, Recurrent Energy Chief Executive Officer. "We look forward to close collaboration with our new parent company to bring solar power further into mainstream energy markets."
Total consideration for the acquisition of Recurrent is approximately $265 million in cash. The transaction is expected to close prior to the end of the first quarter of 2015, subject to customary closing conditions and regulatory approvals.
Source: IWR Online, 03 Feb 2015