Japan-based Solar Frontier has formed a definitive agreement with Gestamp Solar to acquire a 280MW solar power project pipeline in the US.
According to the terms of the agreement, the development team leading Gestamp Solar’s operations in the country will join Solar Frontier’s US subsidiary, Solar Frontier Americas.
The transaction will help Solar Frontier to bring broader market solution, including completed solar facilities, to the US.
Solar Frontier CEO Atsuhiko Hirano said: "The US downstream expansion is part of Solar Frontier’s growth strategy to accelerate our business in key global markets through 2015 and beyond."
Solar Frontier Americas COO Charles Pimentel said, "This transaction will uniquely position Solar Frontier and its new world-class team to execute the 280MW pipeline, thereby strengthening our global presence and allowing us to better leverage our performance advantages to achieve higher returns for our project investors.
"This also enables our team to build a more sustainable presence for Solar Frontier in the Americas and will certainly galvanize our existing and future relationships with our partners, suppliers, and end customers."
Gestamp Solar has developed more than 600MW of power projects globally, and has been responsible for solar developments across Spain, Italy, France, South Africa, Mexico, Japan, Peru, Chile, and the US.
The solar power manufacturer is backed by multinational, industrial holding group, Corporacion Gestamp, which is worth $13bn.
Gestamp Solar looks forward to utilise the high-performance products, development team, and the financial strength of the Japanese firm in order to complete the solar pipeline in the US successfully.
Gestamp Solar CEO Jorge Barredo Lopez said: "We believe that this vertical integration is a major advantage in future development in the US market."
