SunPower buys residential solar co Blue Raven, mulls sale of CIS division

Residential solar system by SunPower. Image by SunPower Corp.

October 5 (Renewables Now) - SunPower Corp (NASDAQ:SPWR) announced on Tuesday it has taken over US residential solar provider Blue Raven Solar, whilst exploring strategic options for its own Commercial & Industrial Solutions (CIS) business.

The Silicon Valley-based solar panel manufacturer is paying up to USD 165 million (EUR 142.2m) for Blue Raven in order to accelerate the expansion of its client base in underpenetrated areas such as the Northwest and Mid-Atlantic regions.

SunPower’s idea is to combine its own products and digital marketing tools with the acquired business' direct sales model to speed up its go-to-market strategy. The company also expects Blue Raven's volume to help grow its suite of financial products and to substantially boost its 2022 loan volume.

Blue Raven was founded in 2014 and presently conducts more than 90% of its volume in 14 states. These account for just about 5% of SunPower's own sales, according to the announcement. The business has achieved a compound annual growth rate (CAGR) of 93% when it comes to revenue, with a direct-to-consumer sales and installation model.

Also today, SunPower said it is focusing its efforts and investments in growing its Residential and Light Commercial (RLC) business and for this reason will consider strategic alternatives for Commercial & Industrial Solutions, including a sale of the division.

“This path would optimize SunPower's capital deployment for RLC while enabling CIS to better take advantage of its growing addressable market and opportunities like community solar, front-of-meter storage and infrastructure legislation tailwinds,” the company stated.

(USD 1.0 = EUR 0.862)

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