Court Approves Complete Solar Purchase of SunPower Assets

Rhea-AI Summary

Complete Solar Holdings, Inc. (Nasdaq: CSLR) has received approval from the United States Bankruptcy Court for the District of Delaware to acquire SunPower 's Blue Raven, New Homes, and Dealer businesses for $45 million in cash. The sale is expected to close by September 30, 2024, bringing the SunPower brand and approximately 1,000 employees under Complete Solar's umbrella.

CEO T.J. Rodgers views this as a pivotal moment for SunPower, emphasizing the potential for growth in the US solar market. He thanked the court for recognizing Complete Solar's offer despite claims made by Maxeon, a Singapore-based company. Rodgers also acknowledged investors who contributed an additional $40 million, bringing the total funding to $80 million for the transition.

Positive

• Acquisition of SunPower's key business assets for $45 million
• Addition of approximately 1,000 employees to Complete Solar's workforce
• Successful fundraising of $80 million to support the transition
• Expansion of Complete Solar's market presence and brand recognition

Negative

• Potential challenges in integrating SunPower's businesses
• Ongoing market difficulties in the US solar industry
• Competition from international players like Maxeon

Insights

Financial Analyst

The acquisition of SunPower's assets by Complete Solar for $45 million in cash is a significant development in the solar industry. This move will substantially increase Complete Solar's market presence and capabilities. The addition of SunPower's brand, businesses and approximately 1,000 employees could potentially lead to synergies and cost savings. However, the solar industry's current challenges, as mentioned by CEO T.J. Rodgers, pose risks. The additional $40 million raised from investors, bringing the total to $80 million, provides a financial cushion for the transition. This acquisition could position Complete Solar favorably for future growth when market conditions improve, given the low penetration of solar in US homes (3.7%) and the cost-competitiveness of solar energy. Investors should monitor the integration process and any potential turnaround in the broader solar market.

Legal Expert

The approval of the asset sale by the U.S. Bankruptcy Court is a important legal milestone for Complete Solar. This decision validates the company's $45 million offer and clears the way for the transaction to close. The court's rejection of Maxeon's claims, described by Rodgers as "ludicrous," suggests that Complete Solar's bid was deemed fair and in good faith. This outcome protects Complete Solar from potential legal challenges to the acquisition. However, investors should be aware that bankruptcy proceedings can be complex and there may be residual legal matters to resolve. The mention of Maxeon's alleged intentions to enter the US market using the SunPower brand highlights potential future competitive and legal considerations. The transition of employees and assets will require careful management to avoid any labor or intellectual property disputes.

Market Research Analyst

This acquisition marks a significant shift in the US solar market landscape. Complete Solar's expansion through SunPower's assets could reshape competitive dynamics in the industry. The low 3.7% penetration of solar in American homes indicates substantial growth potential, aligning with Complete Solar's strategic positioning. The company's emphasis on becoming a "lean and competitive American-owned company with a national footprint" suggests a focus on operational efficiency and market expansion. The mention of solar energy becoming cheaper than fossil fuels points to favorable long-term market conditions. However, the "dark cloud" over the US solar industry implies ongoing challenges, possibly related to policy uncertainties or economic headwinds. Investors should monitor how Complete Solar leverages SunPower's brand equity and dealer network to capture market share as conditions improve. The company's ability to navigate the transition period and emerge stronger will be important for its future market position.

LEHI, Utah, Sept. 24, 2024 (GLOBE NEWSWIRE) -- Complete Solar Holdings, Inc. d/b/a Complete Solar (“Complete Solar” or the “Company”) (Nasdaq: CSLR), a solar technology, services, and installation company, today announced that the United States Bankruptcy Court for the District of Delaware has approved the going concern sale of substantially all assets of the Blue Raven, New Homes and Dealer businesses of SunPower Corporation and certain of its affiliates to Complete Solar for $45 million in cash. The sale is expected to close on or before Monday, September 30, 2024, at which time SunPower businesses, the SunPower brand, and about 1,000 employees will become part of Complete Solar, the temporary name of SunPower during this transition.

T.J. Rodgers, Complete Solar’s CEO, commented “This is a pivotal moment in the history of SunPower, one of the most storied US solar companies. The dark cloud currently hanging over the US solar industry will not bring SunPower’s demise. And when that cloud recedes – as it must, since only 3.7% of American homes have solar power in an age when solar energy has literally become cheaper than fossil fuel energy – the New SunPower will re-emerge as a lean and competitive American-owned company with a national footprint.

Rodgers continued, “I would like to thank the US Bankruptcy Court for recognizing Complete Solar’s good faith offer to acquire the SunPower businesses, despite the ludicrous financial claims made in court by Maxeon, a Singapore company whose stock has been driven down to $0.078 per share as of yesterday due to the dilution engineered by its dominant Chinese investor, the TCL Corporation, which now controls the old SunPower manufacturing organization and would like nothing more than to use the SunPower brand to enter the US market.

Rodgers concluded, “Finally I would like to thank our investors, who recently added another $40 million to the offering we announced on September 9th, to bring the total proceeds to $80 million. We do not anticipate needing any more cash during this transition. The key presentation material used to raise that funding is now available on our website.”

About Complete Solar
Complete Solar is a leading solar services provider in North America. Complete Solar’s digital platform, exceptional customer and installation services, support energy needs for customers wishing to make the transition to a more energy-efficient lifestyle. For more information visit https://www.completesolar.com.

Forward Looking Statements 
This press release may contain certain forward-looking statements within the meaning of the federal securities laws with respect to the referenced transactions. These forward-looking statements generally are identified by the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would,” and similar expressions, but the absence of these words does not mean that a statement is not a forward-looking statement. Forward-looking statements are forecasts, predictions, projections and other statements about future events that are based on current expectations, hopes, beliefs, intentions, strategies and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release the price of Complete Solar’s securities may be volatile due to a variety of factors, including changes in the applicable competitive or regulatory landscapes, variations in operating performance across competitors, changes in laws and regulations affecting Complete Solar’s business, and changes in the combined capital structure; the ability to implement business plans, forecasts, and the evolution of the markets in which Complete Solar will compete.

Readers should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on April 1, 2024. Such filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Complete Solar assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

For investor inquiries, please contact:
Complete Solar, Inc.
Genevieve Swords
Phone: +1 (801) 477-5847
InvestorRelations@CompleteSolar.com

Source: Complete Solar, Inc.

FAQ

What assets is Complete Solar (CSLR) acquiring from SunPower?

Complete Solar is acquiring SunPower's Blue Raven, New Homes, and Dealer businesses for $45 million in cash.

When is the acquisition of SunPower's assets by Complete Solar (CSLR) expected to close?

The acquisition is expected to close on or before Monday, September 30, 2024.

How much funding has Complete Solar (CSLR) raised for the SunPower acquisition?

Complete Solar has raised a total of $80 million, with investors recently adding $40 million to the previously announced $40 million offering.

How many employees will Complete Solar (CSLR) gain from the SunPower acquisition?

Complete Solar will gain approximately 1,000 employees from the SunPower acquisition.