SAN FRANCISCOSilicon wafer supplier MEMC Electronic Materials Inc. will acquire SunEdison LLC, described as North America's largest solar energy services provider, for at least $200 million in cash and stock, the company said Thursday (Oct. 22).
The deal could be worth up to $340 million if SunEdison meets certain performance targets in 2010, MEMC (St. Peters, Mo.) said. The acquisition is expected to close by the end of 2009, subject to closing conditions and regulatory approvals, the company said.
"MEMC will now participate in the actual development of solar power plants and commercialization of clean energy, in addition to supplying the solar and semiconductor industries with our traditional silicon wafer products," said Ahmad Chatila, MEMC CEO, in a statement.
Also Thursday MEMC reported third quarter sales of $310 million, up 10 percent from the second quarter and down 43 percent compared to the third quarter of 2008. The company posted a net loss of $64.6 million for the third quarter, compared to a net loss of $400,000 in the prior quarter and a net income of $183.6 million in the year-ago quarter.
The company said the sequential increase in sales was primarily the result of higher wafer volumes for both semiconductor and solar applications, partially offset by price reductions in wafers for solar applications.
MEMC's third quarter results included restructuring and impairment charges of $39.7 million relating to the previously plant consolidation and $4.5 million of cost associated with the startup of the company's facility in Ipoh, Malaysia, MEMC said.