Case Studies


Zhenfa’s Acquisition of 51% of STR Holdings

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

Greentech’s ROLE

  • Greentech served as the exclusive financial advisor to STR Holdings and helped structure, analyze and negotiate the transaction with Zhenfa New Energy
  • Greentech examined various strategic options for STR Holdings, including transaction structures with multiple potential M&A counterparties
  • Greentech 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

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