Product Code Database
SunEdison, Inc. (formerly MEMC Electronic Materials) is a renewable energy company headquartered in the U.S. In addition to developing, building, owning, and operating solar power plants and wind energy plants, it also manufactures high-purity polysilicon, monocrystalline silicon ingots, , , solar energy systems, and solar module racking systems. Originally a silicon-wafer manufacturer established in 1959 as the Monsanto Electronic Materials Company, the company was sold by Monsanto Company in 1989.
It is one of the leading solar-power companies worldwide, and with its acquisition of wind-energy company First Wind in 2014, SunEdison became the leading renewable energy development company in the world. In 2015, SunEdison sold off its subsidiary SunEdison Semiconductor, marking the completion of SunEdison's transition from a semiconductor-wafer company to a dedicated renewable-energy corporation.
Following years of major expansion and the announcement of the intent—which eventually fell through—to acquire the residential-rooftop solar company Vivint Solar in 2015, SunEdison's stock plummeted, and its more than $11billion in debt caused it to file for Chapter 11 bankruptcy protection on April 21, 2016, eventually emerging in December 2017 as a restructured, smaller, private company.
MEMC's stock began trading on the New York Stock Exchange with an initial public offering in 1995. The IPO raised over $400million, which went to finance an aggressive growth plan and repay some of the debt to its parent company, and Hüls/VEBA retained a majority interest in the company.Swinger, p. 64.
The cyclical downturn in the semiconductor business in the late 1990s hit MEMC hard.Swinger, pp. 65–67. In 1998 the company reported a loss of $316million on revenues of $759million. In June 2000 VEBA AG, still holding 72% of MEMC, was merged with VEBA to form the new E.ON AG.Swinger, p. 68. E.ON wanted to focus on its core business of electric utilities, and assigned Merrill Lynch to sell MEMC.Shinkle, Peter.
target="_blank" rel="nofollow"> "German Firm Sells Holdings in St. Louis-Area Silicon-Wafer Company for $1". St. Louis Post-Dispatch. October 2, 2001. Merrill was unable to find a buyer until MEMC announced that it was on the verge of illiquidity in the middle of 2001.Miller, Beth. "MEMC rescued by Texas Pacific Group, stock soars". St. Louis Business Journal. October 1, 2001. Finally in October 2001 E.ON was able to agree on a deal with the private equity company Texas Pacific Group (TPG), which purchased E.ON's stake in MEMC for a symbolic dollar and offered MEMC $150million in credit lines.Shinkle, Peter.
target="_blank" rel="nofollow"> "German Utility Sells Majority Stake in MEMC Electronic Materials". St. Louis Business Journal. October 3, 2001.Hunter, David.
target="_blank" rel="nofollow"> "Private Equity Group Buys E.On's 72% Stake in MEMC". Chemical Week. October 3, 2001. TPG restructured MEMC's debt, increased its stake in the company to 90%, and cut one third of its workforce.Melcer, Rachel.
target="_blank" rel="nofollow"> "Missouri-Based MEMC Electronic Materials Battles Machinists on Two Fronts". St Louis Post-Dispatch. October 9, 2002.
MEMC returned to profitability following the appointment of Nabeel Gareeb, who was CEO of MEMC from April 2002 to November 2008.Beller, Peter C. "Mr. Sunshine". Forbes. April 21, 2008.Davidson, Andrew (ed). 1000 CEOs. Dorling Kindersley, Penguin Group, 2009. p. 426.Swinger, pp. 69–74. MEMC's market share rose again and by 2003 it reported positive earning figures. "Case Study: MEMC: Realizing A Distressed Company’s Hidden Promise". Private Equity Counsel. PEGCC.org. September 13, 2007. MEMC's sales topped $1billion in 2004, and it was number three in market share.Swinger, p. 69. Through a secondary offering, TPG reduced its share of MEMC in 2005 to 34%, and by the end of 2007, to zero. On October 30, 2008, Gareeb stepped down as president and CEO of the company.
In July 2009 MEMC and Q-Cells, which specialized in construction and operation of photovoltaic plants, formed a joint venture to build Strasskirchen Solar Park, a 50 Megawatt photovoltaic plant in Bavaria, Germany, with MEMC supplying the and Q-Cells converting them into .Hughes, Emma. "Q-Cells International to construct 50 MWp solar park in Bavaria". PV Tech. July 24, 2009. "Q-Cells International to construct 50 MWp solar park in Bavaria". Cleanergy.org. July 27, 2009. Both partners invested $100million each, in return for a 50%-each ownership of the project. As planned, the plant was sold to an investment firm, Nordcapital, after operations started at the beginning of 2010. "Q-Cells SE transfers largest crystalline solar PV park in Germany to Nordcapital". SolarServer. April 6, 2010.
Following its acquisition of SunEdison, MEMC also began to focus on developing and acquiring advanced technologies used in the production of low-cost, high-performance solar panels. It acquired the California-based solar tech company Solaicx in mid 2010. "MEMC Completes Acquisition of Solaicx". Electronics Newsweekly. July 14, 2010. The acquisition included Solaicx's high-volume proprietary "continuous crystal growth" manufacturing technology, which produces low-cost monocrystalline silicon ingots for high-efficiency solar cells. "MEMC Signs Agreement to Acquire Solaicx". Entertainment Close-up. May 31, 2010. "Wafer maker MEMC to acquire solar firm Solaicx for $76 million" . SmartPlanet. May 25, 2010.Wesoff, Eric. "MEMC Continues M&A Hunt with $66M Solaicx Buy". Greentech Media. May 24, 2010. "WFR Buys Solaicx for $103.6M". Zacks Investment Research. May 25, 2010.
In February 2011 Samsung Fine Chemicals and MEMC announced a 50/50 joint venture to build a polysilicon production plant in Ulsan. The plant was to have an initial capacity of 10,000 metric tons per annum. "Samsung Fine Chemicals and MEMC Sign Polysilicon Joint Venture Agreement". PR Newswire. February 15, 2011. As of late 2014 the joint venture, called SMP, is 85% owned by SunEdison (50% by SunEdison, Inc. and 35% by SunEdison Semiconductor) SUNEDISON, INC. FORM 10-Q (Quarterly Report). Filed 11/05/14 for the Period Ending 09/30/14. EDGAR Online. and 15% by Samsung, and the plant has a capacity of 13,500 metric tons per annum.Gallagher, Jim. "Samsung, SunEdison recast partnership". St. Louis Post-Dispatch.
March 20, 2014.Margolis, Matt. "GTAT Begins Delivery Of PV Equipment To Sunedison That Could Be Worth Up To $135m Of Revenue". WallStreetForensics.com. October 6, 2014. "Samsung Buys Into SunEdison". Solar UK Conference. 2014. By October 2014, the plant began producing the world's first high-pressure fluidized bed reactor (HP-FBR) polysilicon, enabling sizeable reductions in the cost of solar energy. "SunEdison To Produce Polysilicon At 'Lowest Cost In The World'". Energy Matters. October 2, 2014. "New SunEdison Technology To Slash Cost Of Solar Power". Associated Press. October 1, 2014.
In 2011 MEMC also extended its solar-energy business. In June 2011, it acquired another North American solar-power project developer, Axio Power.Wesoff, Eric. "Flash: SunEdison to Acquire PV Developer Axio Power". Greentech Media. June 2, 2011. Axio Power. LinkedIn. MEMC List of Subsidiaries – 12.31.11. Securities and Exchange Commission. December 31, 2011. Retrieved March 23, 2015. Axio Power, founded in 2007, developed, financed, and constructed large-scale solar projects, and had more than 500 MW of utility-scale photovoltaic power projects in Canada and the western U.S. In July 2011, MEMC established a joint venture with Korea-based Jusung Engineering, to combine its proprietary Solaicx CCZ monocrystalline wafers with Jusung's high-efficiency cell manufacturing equipment to provide low-cost, high-efficiency solar cells.Osborne, Mark. "MEMC to fabricate solar cells in JV". PV-Tech. July 7, 2011. In September 2011, MEMC acquired Fotowatio Renewable Ventures Inc., the U.S. unit of Fotowatio Renewable Ventures, a developer, operator and owner of solar power plants. "SunEdison buys Fotowatio and its solar project pipeline". Power Engineering. Aug 3, 2011. MEMC Electronic Materials, Inc.: FORM 8-K, Filed May 9, 2012. SECfilings.NYSE.com. Retrieved March 23, 2015. The FRV purchase added up to 1.4 GW of solar projects in the U.S. to MEMC's portfolio.Olson, Syanne. "MEMC, SunEdison finalize Fotowatio Renewable Ventures acquisition". PV-Tech. September 6, 2011.
In December 2011 MEMC undertook restructuring measures in reaction to a cyclical downturn in its semiconductor business and a slump in the whole supply chain of photovoltaic modules. The company announced a headcount reduction of 1,300 employees (18% of the workforce), plus capacity reduction and productivity increase for polysilicon and wafers. "MEMC Announces Global Restructuring". PR Newswire. December 8, 2011.Read, Richard. "Portland factory will lose 100 of its 140 workers as global solar prices, profits plunge". The Oregonian. December 8, 2011.
In 2012 MEMC developed its Silvantis line of multi-crystalline 290-watt solar modules. With 1,000-volt UL certification, the modules created considerable overall energy-production and systems savings on solar projects due to the ability to be more efficiently wired. "MEMC Introduces Silvantis 290W PV Solar Modules". Solar Novus Today. April 10, 2012.
In July 2014, SunEdison created a yieldco subsidiary, called TerraForm Power, Inc., with SunEdison, Inc. maintaining a majority stake as the largest shareholder. "How much could SunEdison spinoff raise?". St. Louis Business Journal. November 26, 2013.Hoium, Travis. "What You Need to Know About the TerraForm Power IPO". Motley Fool. July 18, 2014. TerraForm began publicly trading in an IPO under the ticker "TERP".Ausick, Paul. "SunEdison Spin-Off TerraForm Power Scores Hot IPO". 24/7 Wall Street. July 18, 2014.Parnell, John. "SunEdison’s yield co spin off makes third-party acquisition". PV Tech. October 9, 2014. Company Overview of TerraForm Power, Inc.. Bloomberg Businessweek. This IPO of the power-generation subsidiary spin-off raised roughly $500million. SunEdison launched a second yieldco subsidiary, TerraForm Global, in 2015, to manage renewable-energy projects in emerging markets like Brazil, China, and India.Goossens, Ehren. "SunEdison Plans Second Yieldco With Emerging Markets Focus". Bloomberg Business. May 7, 2015. TerraForm Global Inc. – Profile at New York Times. Retrieved August 21, 2015. This second yieldco trades on the NASDAQ under the ticker "GLBL".
In October 2014 SunEdison announced the development of "zero white space" solar modules, which eliminate wasted space on the solar module surface.Meehan, Chris. "SunEdison Develops New, More Efficient Photovoltaics, Reduces Costs". Solar Reviews. October 14, 2014. That month it also announced the implementation of "high-pressure fluidized bed reactor" (HP-FBR) technology, producing high-purity polysilicon up to 10 times more efficiently and with 90% less energy used than non-FBR technologies. "New SunEdison Polysilicon Technology to Slash Cost of Solar Power". Reuters. October 1, 2014.
In November 2014, with its subsidiary TerraForm Power, SunEdison purchased First Wind, one of the largest wind power developers in the United States, for $2.4billion.Pentland, William. "Major Wind Acquisition Makes SunEdison World's Largest Renewable Energy Developer". Forbes. November 17, 2014.Cardwell, Diane. "SunEdison and TerraForm Buy First Wind, Gaining a Toehold in Turbines". New York Times. November 17, 2014. "SunEdison gets wind power firm for $2B-plus". Associated Press. November 17, 2014. The acquisition added wind energy to SunEdison's capacity, and made it the leading renewable energy development company in the world.
In 2015, MIT Technology Review named SunEdison #6, and the top energy company, in its annual "50 Smartest Companies" list. The review characterized SunEdison as "Aggressively expanding its renewable energy products and building a business to provide electricity to the developing world." "50 Smartest Companies 2015". MIT Technology Review. 2015.
In June 2015, SunEdison, Inc. announced its full divestiture from its semiconductor business, the publicly traded company SunEdison Semiconductor. "SunEdison to Offload Semiconductor Unit Stake for $193M". Zacks. June 29, 2015. SunEdison Semiconductors was acquired by GlobalWafers Co., Ltd on December 2, 2016 and subsequently had its name changed back to MEMC LLC. The completion of the sell-off finalized SunEdison's transition into a dedicated renewable-energy company.Colthorpe, Andy. "SunEdison to sell remaining shares in semiconductor business for US$193 million". PV Tech. 25 June 2015.Feldt, Brian. "SunEdison sells remaining stake in semiconductor". St. Louis Business Journal.
July 3, 2015.
When it filed for bankruptcy, the company asked the court for an independent examiner to audit the company's recent financial transactions. SunEdison requested that the examiner's work start immediately and finish within 60 days, and that the maximum budget be $1 million. Reuters noted that, comparatively, the 2015 independent examination in the bankruptcy of Caesars Entertainment Corp. took one year and cost $40 million.
During the summer of 2015, SunEdison was worth almost $10 billion, and in July 2015 shares traded upward of $33.44. On the day of the bankruptcy filing, the company's trading price on the New York Stock Exchange was 34 cents per share.
According to the Wall Street Journal: "SunEdison used a combination of financial engineering and cheap debt to buy up renewable-power projects around the world before the market turned sour last summer and investors soured on its business model." During the three years preceding the bankruptcy filing, SunEdison invested $18 billion in acquisitions. During that time, the company also raised $24 billion in debt and equity.
In March 2016, the U.S. Department of Justice began an investigation into the company regarding its financial practices. Internally, SunEdison's board completed its own investigation, concluding that the company's leaders were "overly optimistic" but did not make "material misstatements" or commit any fraud.
In July 2017, the U.S. Bankruptcy Court approved SunEdison's bankruptcy-exit plan and it eventually emerged from bankruptcy December 29, 2017.
Brookfield Asset Management acquired a 51% ownership share of Terraform Power in October 2017 along with full acquisition of Terraform Global in December 2017. Brookfield fully acquired Terraform Power in July 2020.
Solar market entry
In 2006 MEMC announced its large-scale entry into the burgeoning solar wafer market, via longterm agreements to supply China-based Suntech Power and Taiwan-based Gintech Energy with solar-grade silicon wafers.Harrington, Shannon D. "MEMC Agrees to Suntech Solar Deal; Ends Motech Talks (Update 3)". Bloomberg News.
July 6, 2006. "MEMC and Gintech Execute Solar Wafer Supply Contract". RenewableEnergyWorld.com. October 27, 2006.
target="_blank" rel="nofollow"> "MEMC makes Taiwan silicon deal". St. Louis Post-Dispatch. October 27, 2006. Similar contracts followed with Germany-based Conergy in 2007, and Taiwan-based Tainergy Tech in 2008.Zubko, Nick. "MEMC Electronic Materials Enters 10-Year Supply Contract". IndustryWeek. July 10, 2008. The company cultivated short-term solar wafer customers as well.Swinger, p. 71. By 2007, MEMC held approximately 14% of the solar wafer market. Having returned MEMC to a foundation of profitability and having helped it enter the solar market, CEO Nabeel Gareeb resigned in November 2008.
target="_blank" rel="nofollow"> "MEMC Announces Resignation of Ceo Nabeel Gareeb; Appointment of Marshall Turner as Interim CEO". Energy Weekly News. November 21, 2008. Ahmad Chatila was appointed president and CEO in February 2009.
target="_blank" rel="nofollow"> "MEMC Appoints Ahmad Chatila Chief Executive Officer". Electronics Newsweekly. February 18, 2009.
Acquisition of SunEdison
In November 2009 MEMC acquired the privately owned company SunEdison LLC, North America's largest solar energy services provider. "MEMC to Expand Scope of Solar Business with Acquisition of SunEdison". Electronics Newsweekly. November 4, 2009. Founded by Jigar Shah Jigar Shah, Director and Claire Broido Johnson Claire Broido Johnson, Director. Empower Energies. EmpowerEnergies.com. SunEdison had been developing, financing, building, operating, and monitoring large-scale photovoltaic plants for commercial customers, including many national retail outlets, government agencies, and utilities, since 2003.Cohen, Nevin (ed). Green Business: An A-to-Z Guide. Sage Publications, 2011. pp. 478–479.Hanna, Nick. The Green Investing Handbook. Harriman House Limited, 2010. Parts 261–262 (Google eBook version).Katz, Jonathan. "MEMC Electronic Materials Inc.: Solar Powered". IndustryWeek. January 7, 2010. The company had pioneered solar-as-a-service, and the solar power purchase agreement (PPA) for no-money-down customer financing.Warren, Roxanne. Rail and the City: Shrinking Our Carbon Footprint While Reimagining Urban Space. MIT Press, 2014. p. 228. With the acquisition of SunEdison, MEMC became a developer of solar power projects and North America's largest solar energy services provider. "MEMC Completes Acquisition of SunEdison". PR Newswire. November 23, 2009. CEO Ahmad Chatila announced that "MEMC will now participate in the actual development of solar power plants and commercialization of clean energy, in addition to supplying the solar and semiconductor industries with our traditional silicon wafer products."Osborne, Mark. "MEMC acquires SunEdison in bid to further build downstream solar business". PV Tech. October 23, 2009. SunEdison was purchased for $200million, 70% in cash and 30% in MEMC stock, plus retention payments, transaction expenses, and the assumption of net debt. "MEMC acquires solar services leader SunEdison". Cleanergy.org. October 25, 2009.
Name changes and Acquisitions 2013–15
On May 30, 2013, MEMC Electronic Materials changed its name to SunEdison, Inc., and also changed its stock-market ticker from "WFR" to "SUNE", reflecting the company's focus on solar energy. "MEMC Changes Company Name To SunEdison". PR Newswire. May 30, 2013.Mehta, Shyam. "From MEMC to SunEdison: A Uniquely American Solar Tale". Greentech Media. March 14, 2013.
In May 2014, SunEdison formally separated its electronics-wafer business from its solar-wafer and solar-energy business. SunEdison Semiconductor, Ltd. spun off in an IPO on the NASDAQ under the ticker "SEMI", with SunEdison, Inc. maintaining a majority stake as the largest shareholder.Barker, Tim. "SunEdison launches semiconductor business IPO". St. Louis Post-Dispatch. May 22, 2014. The IPO generated $94million, used to fund the company's growth.Gara, Antoine. "SunEdison Turnaround A Big Score For Small Activist Hedge Fund". Forbes. November 18, 2014.
Bankruptcy
Following years of major expansion and the announcement of the intent – which eventually fell through – to acquire the residential-rooftop solar company Vivint Solar in 2015, SunEdison's stock plummeted and its more than $11billion in debt caused it to face bankruptcy in April 2016.Cardwell, Diane. "SunEdison, Becoming So Big It Fails, Prepares for Bankruptcy". New York Times. April 15, 2016.Pentland, William. "Burned By The Sun: SunEdison Braces For Bankruptcy, But Why?". Forbes. April 16, 2016.Eckhouse, Brian. "SunEdison's Complex Finances Make Potential Bankruptcy `Messy'". Bloomberg News. April 18, 2016.Eckhouse, Brian. "How Wall Street's Favorite Solar Company Spent Itself to the Brink". Bloomberg News. March 30, 2016. "SunEdison audit panel, directors identify cash accounting issues". Reuters. April 14, 2016. It filed for Chapter 11 bankruptcy protection on April 21, 2016.Crooks, Ed. "SunEdison’s ambitions end in bankruptcy". Financial Times. April 21, 2016.Brickely, Peg and Liz Hoffman. "SunEdison Files for Chapter 11 Bankruptcy Protection". Wall Street Journal. April 21, 2016. To continue its operations and pay staff, the company received $300 million in bankruptcy debt financing. It continued operations during bankruptcy. The debt financing money came from first-lien and second-lien lenders. The bankruptcy court approved the money.
SunEdison companies
External links
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