FH Capital announced that it has entered into a definitive agreement to acquire a 75.1% majority stake in Jinko Solar (U.S.) Industries, the U.S. manufacturing subsidiary of JinkoSolar.
Under the agreement, JinkoSolar will retain a 24.9% minority interest in the business. Financial terms of the transaction were not disclosed.
The transaction transfers controlling ownership of JinkoSolar’s U.S.-based 2 gigawatt solar module manufacturing facility along with its growing Battery Energy Storage Systems business.
Following the closing, FH Capital said it plans to invest additional expansion capital to at least double the current solar module manufacturing capacity while also launching domestic BESS manufacturing operations.
According to the companies, the combined platform is intended to address growing U.S. demand for domestically manufactured solar and energy storage products amid evolving clean energy policy initiatives and infrastructure investment trends.
FH Capital is led by Managing Partner Sanjeev Chaurasia, a renewable energy investment banker and investor with more than two decades of industry experience. Chaurasia previously served as Managing Director at Credit Suisse, where he co-founded the firm’s renewable energy practice and led JinkoSolar’s 2010 IPO on the New York Stock Exchange.
JinkoSolar has operated manufacturing operations in the United States for seven years and maintains a global production and sales footprint spanning multiple international markets.
The transaction remains subject to customary closing conditions and regulatory approvals.
Latham & Watkins served as legal counsel to FH Capital. Morgan Stanley Asia acted as financial advisor to JinkoSolar, while Cleary Gottlieb Steen & Hamilton served as legal counsel.
KEY QUOTES:
“The transaction leverages JinkoSolar’s well established seven-year U.S. manufacturing presence, proven technology, and strong relationships with blue-chip U.S. customers, with FH Capital’s capabilities to create and manage a dynamic platform positioned to meet rising demand for domestic solar and storage solutions.”
Sanjeev Chaurasia, Managing Partner, FH Capital
“FH Capital brings deep sector expertise, financing experience, and a deep understanding of the U.S. market.”
“We believe this transaction provides the right ownership, management and strategic direction for this new venture to grow capacity and serve the growing demand for high performance U.S.-sourced renewable energy products.”
Nigel Cockroft, U.S. General Manager, JinkoSolar
