Meyer Burger initiates M&A process and raises bridge loan amount
Meyer Burger has announced the initiation of a mergers and acquisitions (M&A) process with potential third-party buyers showing interest, marking a significant step for the struggling Swiss solar manufacturer. This move coincides with the company’s extension and increase of its bridge financing facility, originally inked in December 2024.
Having secured US$39.48 million to support its restructuring operations after the termination of a 5GW supply agreement by US developer D.E. Shaw Renewable Investments (DESRI) in the US, Meyer Burger is currently in negotiations with DESRI for a new master agreement. This new agreement would replace the previous one, which DESRI had terminated with a letter sent in November.
Meyer Burger’s module assembly plant in Goodyear, Arizona, is currently channeling “substantially all” of its production to DESRI as part of agreed-upon projects. The company is actively ramping up its second module production line, aiming to achieve an annual nameplate capacity of 1.4GW by the year’s end.
The extension of the new bridge facility, now stretching almost a month beyond the initially set maturity date of 17 January to 14 February, comes with an increase to US$59.5 million. This adjustment enables immediate access to a tranche of US$11.2 million, with the possibility of two additional sub-tranches of up to US$22.4 million, subject to specific conditions.
These recent developments come on the heels of a challenging year for Meyer Burger, beginning with the closure of its module assembly plant in Germany at the start of 2024 to shift focus to its US manufacturing operations. Later in August 2024, the company abandoned plans to construct a solar cell processing plant in Colorado with an annual nameplate capacity of 2GW. Following this, the company announced job cuts and a change in leadership, with former CEO Gunter Erfurt stepping down and Franz Richter assuming the role.
Financially, Meyer Burger faced obstacles in 2024, recording a fivefold increase in net loss during the first half of the year, with the results for the latter half yet to be disclosed.
The extension and enlargement of the bridge financing facility, alongside the initiation of the M&A process, showcase Meyer Burger’s strategic efforts to navigate through a tough period and pave the way for potential growth and stability in the future. These moves position the company to address its operational and financial challenges while pursuing opportunities for expansion and collaboration in the solar industry.
