SunPower (NASDAQ: SPWR) announced it plans to separate into two independent publicly-traded companies: SunPower and Maxeon Solar Technologies.
Maxeon Solar will be the manufacturer and marketer of premium solar panels. Concurrent with the transaction, an equity investment of $298 million will be made in Maxeon Solar by long-time partner Tianjin Zhonghuan Semiconductor Co., Ltd.
Jeff Waters, CEO of SunPower's Technologies business unit, has been named Maxeon Solar CEO. The two companies will cooperate to develop and commercialize next generation solar panel technologies.
"We believe that the solar industry is entering a period of extended growth where success will be driven by value chain specialization, technology innovation and economies of scale," said Tom Werner, CEO of SunPower in a statement. "This new structure and investment will create two focused businesses, each with unique expertise to excel in their part of the value chain."
The company says it will continue its commitment to American manufacturing with its Hillsboro, Ore., Performance Series module assembly facility.
SunPower shares were trading up 4.5% at $8.75 in Monday’s pre-market session. The stock has a 52-week high of $16.04 and a 52-week low of $4.55.