LDK Solar Agrees to Acquire 70% of Solar Power, Inc. for $33 Million
LDK Solar Co., Ltd. a manufacturer of multicrystalline solar wafers, high purity polysilicon and PV products, and Solar Power, Inc. (SPI) announced that LDK Solar agreed to acquire a 70% interest in SPI for approximately $33 million. LDK Solar’s investment provides strategic benefits to both parties. The transaction significantly strengthens SPI’s balance sheet, which will enable the acceleration of the development of its project pipeline, which primarily consists of utility-scale power plants and commercial/industrial distributed generation systems. SPI’s growing development portfolio and pipeline, in turn, should provide LDK Solar with enhanced downstream benefit to its vertical integration model through module supply for large scale projects.
In addition, LDK Solar will purchase certain components of SPI’s manufacturing equipment and assume total manufacturing control of SPI’s former module manufacturing facility in Shenzhen, China. SPI will maintain a separate logistical team in Shenzhen to enhance project development, design and related project management functions at a new location in Shenzhen. The transition in manufacturing is strategic; allowing SPI to focus on development and construction of large scale and utility scale U.S. solar projects, while maintaining product quality and enhancing its competitive position. As a vertically integrated manufacturer and supplier of photovoltaic (PV) products, LDK Solar has more than 20,000 employees worldwide.