Japan’s Sharp Corporation (6753.T) will acquire San Francisco-based renewable energy developer Recurrent Energy for $305 million, the companies announced today.
The acquisition is expected to close before the end of 2010
Recurrent Energy has established itself as a leading solar project developer over the last two years and currently has 2-gigawatts (GW) project pipeline.
The terms of the agreement call for Sharp to pay up to $305 million in cash at closing, subject to balance sheet adjustments, to purchase a 100 percent stake from Recurrent Energy shareholders. Recurrent Energy is a Hudson Clean Energy Partners portfolio company. Other shareholders include Mohr Davidow Ventures.
Recurrent Energy will retain its name, operating as a subsidiary of Sharp. Arno Harris, CEO of Recurrent Energy, will retain his title and continue to lead the company following the acquisition. Recurrent Energy’s executive team and employees will also continue with the company.
The move by Sharp follows a trend that has developed over the last two years with large solar panel manufacturers acquiring or building project development divisions to help create demand for their products.
“It is essential for Sharp to function as a developer in the photovoltaic field, in order to further expand its business in this area. With Recurrent Energy’s know-how as a developer, Sharp aims to become a total solutions company in the photovoltaic field, extending from developing and producing solar cells and modules to developing and marketing power generation plants,” said Toshishige Hamano, Sharp’s Executive Vice President.
In March 2010, Sharp began production at one of the world’s production
facilities for thin-film solar cells at Sakai City in Osaka Prefecture,
Recurrent Energy has driven rapid growth of its development pipeline, with over 330 MW of contracted distributed-scale solar power projects including 170 MW with the Ontario Power Authority, 60 MW with the Sacramento Municipal Utility District (SMUD), and 50 MW with Southern California Edison, and announced projects and joint development agreements in Europe and the Middle East.