ST. PETERS, Mo., May 24, 2010 /PRNewswire via COMTEX/ --MEMC Electronic Materials, Inc. (NYSE: WFR) today announced it has reached a definitive agreement to acquire privately held Solaicx, headquartered in Santa Clara, California.
Solaicx has developed proprietary continuous crystal growth manufacturing technology which yields low-cost, high-efficiency
monocrystalline silicon wafers for the photovoltaic solar industry. The Solaicx technology allows for very high-volume crystal growth compared to the silicon ingots produced in the traditional precision semiconductor manufacturing process. The enhanced electrical performance of wafers from Solaicx ingots allows solar cell manufacturers to create higher efficiency cells with very competitive silicon costs. In addition to these customer benefits, the combined company will have low-cost polysilicon and crystal operations in North America and sales and support offices around the world, allowing the company to provide customers with
industry leading customer service.
Solaicx has approximately 80 employees and a large-scale production facility in Portland, Oregon.
"Solaicx, along with its people and technical expertise, is a great addition to MEMC," said Ken Hannah, President of MEMC Solar Materials. "Solaicx's innovative and advanced manufacturing technology should enable us to reduce costs and improve efficiency, while enhancing our ability to drive the solar industry toward grid parity."
"Bringing MEMC and Solaicx together now is the right thing to do at the right time," continued Hannah. "The monocrystalline silicon market is forecast to grow at a compound annual growth rate of about 50 percent during the next three years. This transaction positions MEMC to significantly reduce the cost of monocrystalline silicon."
"We are pleased to be joining forces with MEMC," said David Ranhoff, President and CEO of Solaicx. "Our technology combined with MEMC's footprint and scale will enable our customers to further reduce the cost of solar electricity."
MEMC will pay to the existing securityholders of Solaicx at closing cash in the amount of $66 million, plus an additional amount in cash equal to amounts which have been recently invested in, or which may be invested prior to closing in Solaicx by its existing securityholders. The aggregate additional investment amount is estimated to be approximately $10 million. Solaicx's indebtedness for borrowed money will be extinguished at closing and is included in these amounts. The merger consideration is also subject to adjustment based on the net working capital of Solaicx at closing. The agreement also includes an earnout, should Solaicx meet
certain performance targets in 2010 and 2011, of up to an additional $27.6 million payable to Solaicx securityholders, consisting of cash and MEMC common stock at the election of the securityholder. The stock portion of the earnout consideration, if any, will be issued to Solaicx securityholders as a private placement.
The acquisition is expected to close by the end of June 2010, subject to customary closing conditions, including Solaicx shareholder approval, and the receipt of regulatory approvals. MEMC expects the acquisition to be accretive to earnings in 2011, subject to purchase accounting adjustments.
GCA Savvian Advisors, LLC acted as exclusive financial advisor to MEMC in connection with this transaction.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of MEMC common stock in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
MEMC is a global leader in the manufacture and sale of wafers and related intermediate products to the semiconductor and solar industries. MEMC is also a developer of solar power projects and North America's largest solar energy services provider. MEMC has been a pioneer in the design and development of silicon wafer technologies for 50 years. With R&D and manufacturing facilities in the U.S., Europe and Asia, MEMC enables the next generation of high performance semiconductor devices and solar cells. MEMC's common stock is listed on the New York Stock Exchange under the symbol "WFR" and is included in the S&P 500 Index. For more information about MEMC, visit http://www.memc.com/.
Solaicx manufactures low-cost, high-quality silicon ingots using proprietary equipment optimized for the solar industry. Solaicx is "making solar electricity cost effective"(R) by reducing the manufacturing cost of crystalline photovoltaics, which comprise more than 80 percent of all solar cells on the market today. The Solaicx process provides significant competitive advantages in terms of cost, quality and silicon utilization. For more information about Solaicx, visit http://www.solaicx.com/.
Certain matters discussed in this news release are forward-looking statements, including that the acquisition is expected to close by the end of June 2010; that the acquisition is expected to be accretive to earnings in 2011, subject to purchase accounting adjustments; that the aggregate additional cash purchase price payable at closing is estimated to be approximately $10 million; that with the acquisition, MEMC expects to reduce costs and improve efficiency, while enhancing its ability to drive the solar industry toward grid parity; and that Solaicx technology combined with MEMC's footprint and scale will enable our customers to further reduce the cost of solar electricity. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include risks related to, among other things, obtaining required stockholder and regulatory approvals of the acquisition; the potential impact on the business of Solaicx due to uncertainty about the acquisition; the retention of employees of Solaicx and the ability of MEMC to successfully integrate Solaicx's market opportunities, technology, personnel and operations; uncertainties as to the timing of the merger; uncertainties as to how Solaicx securityholders will vote with respect to the merger; the risk that competing offers for Solaicx will be made; the
possibility that various closing conditions for the transaction may not be satisfied or waived, including that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the transaction; the effects of disruption from the transaction making it more difficult to maintain relationships with employees, customers, suppliers, other business partners or governmental entities for both MEMC and Solaicx; other business effects, including the effects of industry, economic or political conditions outside of Solaicx's or MEMC's control; transaction costs; actual or contingent liabilities; the inability to predict the future success or market acceptance of Solaicx's products while part of MEMC; the highly competitive and rapidly evolving markets in which both Solaicx and MEMC compete; Solaicx's limited operating history and the fluctuation of its past operating results; and other risks described in MEMC's filings with the Securities and Exchange Commission. These forward-looking
statements represent MEMC's judgment as of the date of this release. MEMC disclaims, however, any intent or obligation to update these forward-looking statements.
SOURCE MEMC Electronic Materials, Inc.
EE Times
Publication Date: March 26, 2009
PORTLAND, Ore. — Solar cell ingot manufacturer Solaicx has developed its own manufacturing process for wafers used in solar panels. The result, it claims, is much higher solar conversion efficiencies.
Solaicx's efforts to differentiate itself from traditional manufacturers of silicon ingots for solar applications has resulted in its receiving the Progressive Manufacturing 100 award for its proprietary manufacturing process. The process for crystalline silicon photovoltaics was cited for consistently high efficiency.
Full Article: Read More / Watch Video
Portland Business Journal
Publication Date: March 2, 2009
Tim Ruch spent Monday wading through the federal stimulus package trying to figure out what it means for Ra Energy LLC, a solar water heating company.
That was followed by other solar energy companies asking him what it means.
John Sedgwick, vice president and co-founder of Solaicx Inc., the Santa Clara, Calif., company that makes silicon wafers for solar panels at a North Portland plant, said the stimulus should increase U.S. interest among the company’s foreign business partners.
Read Full Article (Registration Required)
By John Sedgwick, VP of Marketing and Sales for Solaicx
Published in Solar Industry Magazine
Santa Clara, Calif. and Portland, Ore. – March 25, 2009 – Solaicx, a leading manufacturer of monocrystalline silicon ingots and wafers optimized for solar applications, was recently awarded the Progressive Manufacturing 100 Award (PM100). This is the second year in a row that Managing Automation has honored Solaicx for its progressive core business, the management of its operations and the optimization of its advanced manufacturing technologies.
Full Article: Read More
Earth2Tech
Publication date: October 6, 2008
"Solar photovoltaic manufacturing alone could provide 22,560 new jobs to the region. On that front, Oregon's BETC is already working and has helped attract four solar manufacturers to the state over the past year and a half, including SolarWorld, Solaicx, Sun Silicon and — most recently — Sanyo. In an economic climate that's causing fears of a recession and lost jobs, the green job trend is offering a rare area of growth."
Full article: Read More
Oregon Business Magazine
Publication Date: June 2008 print edition
“Solaicx CEO Bob Ford says government support played a role in the decision to set up in Portland, but the region’s reliable, low-cost power was also a factor, as was the available workforce. ‘There were five crystal-growing operations already here and some of them were closing down,’ he says. ‘That means you have an immediately available pool of workers who understand the process.’ The company has hired more than 50 people and is accepting applications for crystal growers and wire saw operators. Ford predicts the number of jobs will double by the end of the year as the company works out the kinks in its new process and gears up to meet demand. ‘The solar industry is a locomotive that has already left the station,’ he proclaims, ‘and it is accelerating.’”
Full Article: Read Article
Sustainable Industries Magazine
Publication Date: June 9, 2008
“In June 2007, Santa Clara, Calif.–based Solaicx announced it would locate a manufacturing facility in Portland; that facility is already operating and employs 50 people. In November 2007, Carlsbad, Calif.–based Peak Sun Silicon announced plans to build a silicon manufacturing facility in Millersburg that would employ about 50 people and produce 50 metric tons of silicon by the end of 2008. Both companies cited the BETC, along with the state’s renewable portfolio standard, location on the West Coast and Oregon’s low energy costs, as a prime reasons to locate in Oregon. The focus on developing a solar cluster also helped because of the manufacturing efficiencies it would create.”
Full article: Read More
Managing Automation
Publication Date: March 10, 2008
“Managing Automation, a Thomas Publishing Company, LLC publication, has announced the winners of its fourth annual Progressive Manufacturing 50 Awards. The Awards Program has significantly expanded since its inception in March of 2005 and recognizes manufacturers that are being progressive in their businesses, in the management of their operations and in their use of advanced technologies... Judges evaluated and scored nominated projects based on the following criteria: project scope, business impact, customer impact, technology use and scale.”
Full article: Read More
Portland Tribune
Publication Date: March 4, 2008
“A report released last year by the American Solar Energy Society estimated that renewable energy and energy-efficiency industries now generate around 8.5 million jobs and nearly $1 trillion in revenue. The report, “Economic Drivers for the 21st Century,” estimated that the impact could grow to 40 million U.S. jobs and $4.5 trillion by 2030.
“Jeff Jones, vice president of manufacturing at the North Portland Solaicx plant, agreed. ‘The growth in this field is at 30 to 40 percent a year, and that could go on for 30 years or more,’ said Jones, whose company produces monocrystalline silicon ingots used in solar panels.”
Full article: Read More
Greentech Media
Publication Date: February 28, 2008
“Bob’s company is a triple threat to the global silicon shortage, attacking it through low cost production, better supply utilization, and a higher quality output. Solaicx’s ‘whole process is about cost reduction” that “directly attacks the grams per watt.’
“Instead of relying on the traditional batch processing method for silicon wafers, Bob and his team have developed an innovative continuous processing method that achieves ‘far higher throughput on an equal footing basis – producing 4 or 5 times more than the average grower.’”
Full article: Read More
Cleantechnica
Publication Date: February 28, 2008
“I see nothing stopping this market from continuing to grow at 30%-50% per year for the foreseeable future. We have not even scratched the surface of the total electricity market. We are not even a .001% perhaps of the total market, so the upside market is enormous.”
Full article: Read More
Energy Priorities
Publication Date: February 25, 2008
Podcast: Read More
The Oregonian
Publication Date: January 29, 2008
“The opportunity: ‘You're seeing the beginnings of an industry show up here,’ said Jones, 59, whose title is vice president of manufacturing. ‘We're on the front end of it.’ With all the spare chip-manufacturing capacity and talent in the region, he said, Oregon has an opportunity to capture a lot more industry growth.”
Photon International
Publication Date: December 2007
“This year, Solaicx expects to produce 10 MW of wafers at its existing pilot line in Santa Clara and its new production plant in Portland. Next year, the company forecasts wafer output of 75 MW. ‘We really believe we have a breakthrough technology in single crystal silicon,’ Ford said, ‘It’s an exciting time for a little company like Solaicx."
Energy Biz Magazine
Publication Date: September/October 2007
“Most people don’t link solar energy with rainy Oregon. However, two solar product manufacturers will have new plants up and running in the state by the second half of 2008 attracted largely by the state’s skilled workforce and its ability to help meet the industry’s growing demand for solar photovoltaic systems.”
Santa Clara, Calif. – September 10, 2007 – Solaicx, a leading manufacturer of monocrystalline silicon ingots and wafers optimized for photovoltaic applications, today announced that it has been selected by AlwaysOn as a winner of the 2007 GoingGreen 100 award. The final list of companies was selected from among hundreds nominated by the top venture capital firms as well as other green technology insiders. Criteria used in the selection process include innovation, market potential, commercialization, media buzz and stakeholder value creation. For more information, see: http://alwayson.goingon.com/permalink/post/18632
Photon International
Publication Date: September 2007
Santa Clara, Calif. – July 18, 2007 – Solaicx, a leading manufacturer of monocrystalline silicon ingots and wafers optimized for photovoltaic applications, today announced that it has been selected from a pool of over 1,000 technology companies as one of AlwaysOn’s Top 100 Private Companies for 2007. Over the past five years, the prestigious list has acknowledged promising entrepreneurial opportunities and investments in the global technology industry. Important criteria for the award include exceptional innovation, market potential, customer adoption, media buzz and investor value creation. For more information, see: http://alwayson.goingon.com/permalink/post/15899
Red Herring
By Adena DeMonte
Publication Date: May 7, 2007
Solaicx on Tuesday said it has received an additional $27.1 million in funding, giving the solar wafer developer the funds it needs to boost production.
Santa Clara, California-based Solaicx, a Red Herring North America 100 company for 2007, has developed a new process for making single-crystal silicon wafers—designed specifically for solar panels—more efficiently and cheaply.
Full Article: Read More
San Jose Business Journal Press Release SANTA CLARA, Calif., May 2 /PRNewswire/ -- Solaicx, a leading manufacturer of mono-crystalline silicon wafers and ingots optimized for photovoltaic applications, today announced that the company has been named to Red Herring's prestigious list of the top 100 private technology companies in North America for 2007. Selected from an applicant pool of over 800 leading companies, Red Herring recognizes the North America 100 for their part in driving the future of technology.
Full Article: Read More
CNN Money.com
(Business 2.0 Magazine)
By Tom McNichol and Michael V. Copeland
Publication Date: 3/2/07
Silicon Valley has changed the world once. Now, thanks to a wave of investment and innovation in solar power, it's on to the next revolution: A massive disruption of the U.S. electricity market.
Full Article: Read More
The Economist
Publication Date: 03/10/07
Quote: "Last year Microsoft outfitted its campus in Silicon Valley with a solar system from SunPower, a local company that makes high-efficiency (and, some say, the world's best-looking) solar panels. A few months later Microsoft's arch-rival, Google, began building something on an even
grander scale of this may yet be topped by Wal-Mart...In just one hour the Earth receives more energy from the sun than human beings consume during an entire year.
Full Article: Read More
PHOTON International
Publication Date: 02/07
Quote: "After starting out with much fanfare a few years ago, PV pioneer
Bill Yerkes' monocrystalline wafer company Solaicx had been eerily quiet of late. But stealthily, Solaicx has been delivering wafers to an unnamed partner for the past year. By the end of 2007, the Santa Clara, California-headquartered company plans to install 12 full-scale continuous growth Czochralski furnaces capable of producing 48 MW at a new plant in Portland, Oregon.
Full Article: Read More
San Francisco Chronicle.com
Tom Abate, Chronicle Staff Writer
Publication Date: 02/16/04
Advocates say 50-year-old industry is finally in a position to heat up.
Fifty years ago, scientists at Bell Laboratories unveiled the first modern solar cell, using a silicon semiconductor to convert light into electricity. Their demonstration inspired a 1954 New York Times article to predict that solar cells would eventually lead "to the realization of one of mankind's most cherished dreams -- the harnessing of the almost limitless energy of the sun.''
Full Article: Read More
Solar Access.com
Publication Date: 1/28/04
Solaicx, a new player in the solar photovoltaic (PV) field announced it has over-subscribed its US $1 million start-up financing round from private investors and will deliver on its promise to offer solar electricity as a cost-competitive alternative to traditional electricity. The funding closely follows several company achievements, including the opening of a new office and laboratory in Los Gatos, California, the filing of a number of core U.S. patents, the addition of solar energy pioneer Bill Yerkes as CTO and progress towards revenue generation.
Full Article: Read More
Forbes.com
Elizabeth Corcoran
Publication Date: 11/24/03
A handful of young companies are producing new ways to harness solar energy. The sun never shines in the basement laboratory on the University of California, Berkeley campus, where graduate students Delia Milliron and Ilan Gur spend their days. But that isn't stopping them from doing some of today's most advanced work in solar-cell technology.
Full Article: Read More
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Phone: (408) 988-5000
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