MEMC Electronic Materials, Inc. (NYSE: WFR) and its solar energy subsidiary, SunEdison, announced that it has completed the acquisition of privately held Fotowatio Renewable Ventures, Inc. ("FRV U.S."), the 100 percent owned U.S. subsidiary of Fotowatio Renewable Ventures ("FRV"), a leading global developer, operator and owner of solar power plants.
At closing, MEMC paid the previously disclosed initial consideration of $112 million, plus repayment of approximately $19 million in intercompany loans and capital contributions. Additional consideration of up to $103.6 million may be paid should FRV U.S. achieve certain performance targets.
"We are pleased to complete this transaction and welcome the experienced FRV U.S. team to our company. This complementary acquisition will help us secure a leading position in the U.S. utility market," said Carlos Domenech, President of SunEdison and Executive Vice President of MEMC. "The acquired capabilities and portfolio of projects with leading utilities adds meaningful value to our operations. Together, with our proven capabilities, we will continue lowering the cost of solar deployments through innovation and technology advancements, while providing economic solar solutions to our customers."
FRV U.S.'s solar portfolio includes 42 MW in operation in the U.S. In addition, FRV U.S.'s solar portfolio includes 28 projects currently in various stages of development, providing SunEdison with up to 1.4 GW of solar projects in the United States. The FRV U.S. staff will remain in northern California and will report into MEMC's SunEdison subsidiary.
The company will provide further details on the transaction during its third quarter earnings conference call in early November.