MEMC Electronic Materials Inc. (NYSE: WFR) and its solar energy subsidiary, SunEdison, will buy Fotowatio Renewable Ventures Inc. (FRV) , the 100 percent owned U.S. unit of Fotowatio Renewable Ventures, a developer, operator and owner of solar power plants.
At closing, MEMC will pay $112 million, plus repayment of around $22.9 million in intercompany loans and capital contributions. The final purchase price is subject to adjustment based on the amount of the loans and capital contributions at closing. The agreement includes an additional deferred payment of up to $103.6 million should the business unit achieve performance targets.
FRV U.S.'s solar portfolio includes 42 MW in operation in the U.S., including 14 MW at Nellis Air Force Base in Las Vegas, Nevada. Its solar portfolio includes 28 projects in various stages of development. They will provide SunEdison with up to 1.4 GW of solar projects in the U.S. The FRV U.S. staff of 50 will remain in northern California and will report into MEMC's SunEdison unit.
The acquisition is expected to close in the third or fourth quarter of 2011, subject to customary closing conditions, including the receipt of regulatory approvals.
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