Zhenfa’s Acquisition of 51% of STR Holdings
- 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 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.