A definitive agreement for the acquisition has already been entered. Once completed, Canadian Solar’s total solar energy project pipeline will surge by 4.0–8.5 gigawatts (GW), with 1 to 2.4 GW of that figure pertaining to late-stage projects, ones that’ll be online relatively soon.
As it stands, Recurrent Energy’s late-stage project pipeline represents one of the largest utility-scale project portfolios set to be completed before the tax-credit expiration set for 2016. Altogether, it represents an estimated revenue opportunity “of at least $2.3 billion for Canadian Solar under a build and sell business model.”
The acquisition will place Canadian Solar into a more stable position near the top of the solar energy developer pile. It is reportedly aimed at improving the company’s position before the expected creation of a yieldco in the coming months.
“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,” stated Canadian Solar Chairman and Chief Executive Officer, DShawn Qu. “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.”
Recurrent Energy’s Chief Executive Officer Arno Harris echoed a similar sentiment thusly: “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. We look forward to close collaboration with our new parent company to bring solar power further into mainstream energy markets.”
The acquisition is currently expected to be completed by the end of the first quarter of 2015.
The sole financial advisor for the deal for Canadian Solar was Credit Suisse, while the Bank of Tokyo-Mitsubishi UFJ, Ltd/MUFG Americas also functioned as financial advisor to Sharp Corporation.
Image Credit: Canadian Solar