Sharp buys Recurrent for $305 million (San Francisco)

Sharp Corp. will pay $305 million for San Francisco-based Recurrent Energy, which develops solar projects.

Osaka-based Sharp makes solar panels and other electronics. Sharp was the world’s third-largest producer of solar panels in 2009, according to Photon International. The firm employs 65,000 people.

Buying Recurrent’s pipeline means Sharp will move into project development just like its solar panel competitors San Jose-based SunPower and San Francisco-based Suntech, among others. Recurrent CEO Arno Harris said Recurrent will continue to operate under its own name as a subsidiary of Sharp and that all of Recurrent's employees will remain with the company.

Harris said the company needed to seek a partner with a deep balance sheet that could provide the capital to develop such a huge project pipeline. Recurrent sought the advice of Morgan Stanley.

"We decided a strategic sales made the most sense," Harris said.

Recurrent has 2 gigawatts of solar projects in its pipeline with only a few megawatts actually installed and producing power. Large solar projects can take years to plan, develop and get to bid and acquiring Recurrent’s pipeline is a good way for Sharp to get a jump on the development business.

Harris started the company in 2006 and landed its first highly visible project, 5 megawatts on San Francisco’s Sunset Reservoir and on the roof of Pier 96 in 2008. That project took several years to get final approvals and is nearly finished.

Read the full story in the San Francisco Business Times.