TotalEnergies acquires SunPower's commercial and industrial business.

• TotalEnergies, SunPower's largest investor, is acquiring its commercial and industrial business for $250 million, with $190 million paid at closing.
• SunPower first announced plans to sell the business in October.

The two companies announced Wednesday evening that they are buying each other's commercial and industrial businesses.

The solar investment tax credit extension will result in an additional $60 million payment, bringing the total deal value to $350 million, a company spokesperson stated. The acquisition is expected to be completed in the second quarter.

SunPower is majority-owned by TotalEnergies, with a 50.8% stake in the company.

SunPower announced a restructuring in October to focus on the residential solar market, which the company said is more profitable and growing faster. As part of this restructuring, the company plans to sell its commercial and industrial business.

SunPower CEO Peter Faricy stated that the sale allows the company to concentrate on enhancing the residential experience, boosting investment in product and technological advancements, and expanding its customer base.

TotalEnergies, a France-based company, announced that the deal enables it to increase its renewable energy presence in the United States.

In October, when SunPower announced its restructuring, Faricy stated that the commercial and industrial unit had attracted potential buyers' interest, though he did not disclose any names.

Faricy stated in November that the company had attracted buyers and would provide an update on a potential buyer by the end of the December quarter.

Despite facing supply chain and labor issues, the business is healthy, according to Faricy, who spoke to CNBC in November after the company's third-quarter earnings.

Despite a 6% increase in shares of SunPower on Wednesday due to strong earnings from Enphase Energy, the solar sector has seen a decline of nearly 18% for 2022 and 65% over the past year.

After spinning out its photovoltaic module maker in August 2020, the company is now developing plans for a streamlined, residential-focused business.