TotalEnergies acquires SunPower’s commercial and industrial business for $250 million

French energy giant TotalEnergies said on Thursday it will buy US based solar technology and energy services provider, SunPower Corp’s commercial and industrial business, for US $250 million, including $60 million of earn-out subject to regulatory evolution.

The company said that through this investment they will be able to increase their distributed generation business footprint to the United States and add over 100 MW of additional capacity per year.

“With this acquisition, TotalEnergies is further investing to grow its distributed generation activity in the U.S. and support its B2B customers in meeting their sustainable development goals. It is a new milestone in our renewable development in the country," said Vincent Stoquart, senior vice president renewables for TotalEnergies in a statement.

Stoquart said that they are targeting 4 gigawatts of solar capacity by 2025. 

TotalEnergies said in the statement that this agreement will give SunPower additional resources to focus on the growing residential market.

Peter Faricy, CEO of SunPower said in the statement that  the sale enables his company to focus on creating a “superior residential experience”, and increase their investment in product and digital innovation.

“The enhanced strategic clarity created by this transaction will help SunPower lead the industry and deliver maximum value to our investors, partners and customers,” explained Faricy.

The French company will still hold a majority ownership stake  of 50.83 percent in SunPower. The transaction is expected to close early in the second quarter of this year.