SunPower in advanced talks on sale of commercial business
SunPower is in advanced discussions to sell its commercial- and industrial-solutions business as it pivots toward expanding its residential and light-commercial operations.
The solar and power-storage company said earlier this year that it was exploring strategic options for its CIS business so the unit could better focus on community solar and front-of-meter storage. The company is seeking to finalize discussions as early as the first quarter of 2022, according to a news release Tuesday morning.
Jeffrey Osborne, an analyst at Cowen & Co., estimated the unit could sell for between $100 million and $200 million.
Raymond James & Associates analyst Pavel Molchanov estimated the unit could fetch $200 million and said potential buyers could include solar developers that focus on commercial systems - including Altus Power, Nautilus Solar Energy and Strata Clean Energy - or global clean-energy giants such as Electricite de France and Engie.
"It will not be difficult to find a buyer," Molchanov said.
SunPower shares fell 2% at 11:35 a.m. in New York.