S.A.G. Solarstrom reaches €65 million deal for acquisition of business

By Caroline Salls

Pittsburgh, Sept. 2 – S.A.G. Solarstrom AG concluded a €65 million contract with Shunfeng Photovoltaic International Ltd. subsidiary SF Suntech Deutschland GmbH for the acquisition of the business operations of the S.A.G Group, according to an EQS Group AG news release.

As part of a transferred reorganization scheme, EQS said the transaction will enable the operative business of the S.A.G. Solarstrom Group, together with all its business areas, to be continued and the further European activities of Shunfeng to be bundled.

S.A.G.’s management will remain in the new company at management level.

EQS said the investor process has been supported by Roland Berger Strategy Consultants.

According to the release, the S.A.G. Solarstrom Group’s creditors can expect an above-average insolvency quota with the successful conclusion of the investor process.

“The S.A.G. Solarstrom Group is a perfect fit for our downstream portfolio and will strengthen our European presence in the photovoltaic market,” SF Suntech chief executive officer Eric Luo said in the release.

As part of the growth strategy, it is expected that new jobs will be created and the future company location of Merzhausen will function as the European headquarters.

“For the new company, we envisage substantial growth prospects, both in the European and the international market,” S.A.G. Solarstrom CEO Karl Kuhlmann said in the release.

Although the acquisition by SF Suntech might be subject to the approval of Shunfeng Photovoltaic shareholders, the release of securities and merger clearance checks, EQS said the insolvency administrator and the contractual partners expect the transaction can be concluded within the next six to eight weeks.

“In 2015, we can start up once again with international plant construction,” Kuhlmann said. “New business was put on hold up to now due to [S.A.G. Solarstrom’s] insolvency proceedings.”

Solarstrom is a Freiburg, Germany-based company that constructs and operates solar power plants and installations.

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