TRANSACTION OVERVIEW

  • STR Holdings (NYSE: STRI) sold 27.6mm shares to Zhenfa New Energy, representing a 51% ownership interest in STR.
  • The proceeds from this sale were used to fund a special dividend to stockholders other than Zhenfa.
  • STR entered into a sales service agreement with Zhenfa to support STR’s expansion of business in China.

STR HOLDINGS OVERVIEW

  • STR Holdings is a global provider of high quality solar encapsulants with 20 GW of STR protected modules in the field today.
  • The Company is headquartered in Enfield, Connecticut with encapsulant manufacturing facilities in Spain, Malaysia and China.
  • By leveraging Zhenfa’s relationships with many of STR’s Chinese customers, STR forecasts 40%+ increases in total sales volume in 2015 and 2016.

ZHENFA NEW ENERGY OVERVIEW

  • Zhenfa New Energy is the leading developer of solar PV power stations in China.
  • The Company designs, installs, owns and operates utility-scale solar PV power plants primarily in China and is the largest solar EPC in China.
  • The Company installed approximately 1.3 GW of solar systems in 2013.
  • Zhenfa owns stakes in over 40 solar power installations in 10 Chinese provinces, as well as several other projects in Western markets.
  • For Zhenfa, the transaction presents an opportunity to establish a presence in the U.S. solar value chain, which Zhenfa has identified as an attractive market for additional future investment.

GCA’S ROLE

  • GCA served as the exclusive financial advisor to STR Holdings and helped structure, analyze and negotiate the transaction with Zhenfa New Energy.
  • GCA examined various strategic options for STR Holdings, including transaction structures with multiple potential M&A counterparties.
  • GCA also provided a fairness opinion to STR’s Board of Directors regarding the transaction with Zhenfa.

WHAT THE TRANSACTION MEANS FOR CHINA-U.S. CROSS BORDER TRANSACTIONS

  • Through M&A and investment, Chinese companies can bring Sustainable Infrastructure companies to China, lower manufacturing costs and leverage sales channels.
  • Chinese companies in the solar value chain will look for opportunities to create greater integration throughout the rapidly growing global solar PV industry.