TotalEnergies (NYSE:TTE) today announced it has signed a definitive agreement with SunPower Corp.’s (NASDAQ:SPWR) to purchase its Commercial & Industrial Solutions (CIS) business for $250 million, including $60 million of earn-out, subject to regulatory evolution. TotalEnergies is the majority shareholder of SunPower, a leading solar technology and energy services provider.
This acquisition is another step in TotalEnergies’ roadmap to develop its distributed generation business. They are currently accounting to close to 500 MW in operation worldwide. It will allow TotalEnergies to extend its distributed generation business footprint to the U.S. and to develop over 100 MW of additional capacity per year. Beyond, this activity will also create synergies with TotalEnergies’ large-scale solar energy portfolio in the U.S and enable B2B customers to benefit from more comprehensive energy solutions and new capabilities in financing and project ownership.
As for SunPower, this operation follows the previous announcements to focus on its high-growth residential business, offering a superior customer experience with a growing ecosystem of innovative products and services, hence exploring strategic options for the CIS business.
All in all, this win-win operation fully fits TotalEnergies and SunPower’s respective strategies to better serve industrial, commercial, and residential customers.
Growing TotalEnergies means more solar
“With this acquisition, TotalEnergies is further investing to grow its distributed generation activity. That’s in the U.S. and to 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”, said Vincent Stoquart, senior vice president of Renewables for TotalEnergies. “This will also give SunPower additional resources to focus on the growing residential market. We look forward to welcoming the Commercial & Industrial teams and ensuring the continuity of TotalEnergies’ commitment in this business as we integrate this high-quality portfolio of products and customers.”
“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,” said Peter Faricy, CEO of SunPower. “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.”
SunPower follows a thorough process involving discussions with a number of parties. Upon the unanimous recommendation of a special committee of SunPower’s independent directors, the acquisition has been approved by both companies. Moreover, the transaction is expected to close in early Q2. It’s subject to the satisfaction of customary closing conditions. This operation is not expected to reduce TotalEnergies’ majority ownership stake (50.83%) in SunPower.
TotalEnergies is a global multi-energy company that produces and markets energies. For example, oil and biofuels, natural gas and green gases, renewables, and electricity. Our 105,000 employees commit to energy that is ever more affordable, cleaner, and more reliable. Most importantly, accessible to as many people as possible. Active in more than 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects. They ensure their projects and operations contribute to the well-being of people.
TotalEnergies in the U.S.
TotalEnergies began operating in the United States in 1957. The company focuses on identifying opportunities in the evolving U.S. energy market. They want to meet growing energy needs while reducing carbon emissions. The Company is developing a number of solar and energy storage projects in the United States. They are targeting 4 gigawatts in cumulative capacity by 2025. It is also positioning itself in the high-potential U.S. offshore wind market. It has qualified to participate in the upcoming New York Bight offshore wind energy auction. Additionally, it also launched a joint venture to explore floating offshore wind opportunities off the West Coast.
TotalEnergies and renewables electricity
TotalEnergies is building a portfolio of activities in renewables and electricity. It’s part of its ambition to get to net-zero by 2050. At the end of September 2021, the companies gross renewable electricity generation capacity is 10 GW. Moreover, TotalEnergies will continue to expand this business to reach 35 GW of gross production capacity. That’s from renewable sources and storage by 2025. The goal is to be among the world’s top 5 producers of electricity from wind and solar energy.