SunPower Spins-off It’s Solar Panel Manufacturing Unit

In November 2019, US-based solar power company, SunPower announced that it would split both of its publicly traded companies. The solar power firm announced that it would separate most of its solar panel manufacturing operations from its storage and energy services, it expected shares to be up as much as 15% when the split happens.

Sunpower Spinoff Details

The new solar panel company, Maxeon Solar Technologies, will have its headquarters in Singapore, with its manufacturing operations will be in France, Mexico, Malaysia, and the Philippines. While the other half of the company will still maintain its headquarters in California, retaining the SunPower name. It will give more attention to growing its market in the U.S. for residential and commercial rooftop solar installation, through its large network of dealers. SunPower will also maintain its new solar panel factory in Oregon.

“This transaction will also simplify both organizational structures, lowering costs, while improving efficiency and creating (two) more nimble companies,” said chief executive officer Thomas Werner on a conference call.

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Werner will continue as the CEO of SunPower, while Jeff Waters, CEO of SunPower’s Technologies business unit will assume a new role, heading Maxeon Solar Technologies.

As part of the spinoff deal, Tianjin Zhonghuan Semiconductor Co., SunPower’s long-time partner will invest $298 million in the new solar panel company, and hold a 29% stake in the company as well. The rest of the stake will be owned by SunPower shareholders.

From the time the announcement was made, nine months ago, the separation was expected to have been completed in the second quarter of 2020.

On June 16, 2020, SunPower provided an update on the planned spin-off. The company said it anticipated closing the planned spin-off of Maxeon Solar Technologies in the third quarter of 2020. It reiterated its second-quarter 2020 guidance due to continuous improvements in its U.S. and international Distributed Generation (DG) business.

“We’ve made significant progress over the past several months to create and define our two independent pure-play, publicly-traded companies, including Tianjin Zhonghuan Semiconductor Co. (TZS) receiving the necessary regulatory approvals to make its Maxeon Solare investment,” SunPower’s CEO and chairman of the board Tom Werner said. “Given the global pandemic, we’ve experienced some delays in finalizing financing for the transaction, but anticipate closing during the third quarter. We’re well-positioned for the second half with new innovative products, as well as benefitting from our online and digital investments in our U.S. DG business.”

About SunPower

SunPower is one of the most innovative and lucrative sustainable energy companies. It supplies a diverse group of customers—residential customers, businesses, governments, schools, and utilities— with whole solar solutions and services. This solar energy company has over 30 years of proven experience and delivers maximum value performance to its customers. SunPower is headquartered in Silicon Valley, with other operational bases in five continents—including Africa, Asia, Australia, Europe, North and South America.