FH Capital acquires Jinko Solar

FH Capital has agreed to acquire a 75.1% stake in Jinko Solar (U.S.) Industries, the American manufacturing arm of solar giant JinkoSolar. The acquisition will give FH Capital control over JinkoSolar's 2-gigawatt solar module production facility and its emerging Battery Energy Storage Systems (BESS) business. Though the financial specifics of the transaction remain undisclosed, the deal underscores the growing focus on expanding domestic renewable energy manufacturing amidst favorable U.S. policy shifts.

JinkoSolar will maintain a 24.9% minority stake in the subsidiary. The U.S.-based operations, which have been in place for seven years, form a part of JinkoSolar's extensive global production network. Post-acquisition, FH Capital plans to inject additional capital to double solar module production capacity and commence BESS manufacturing operations domestically.

This strategic move aims to capitalize on the increasing demand for U.S.-manufactured solar panels and energy storage solutions. The transaction aligns with the current trajectory of U.S. energy policies that prioritize clean energy infrastructure improvements. Led by Sanjeev Chaurasia, an industry veteran with roots in renewable energy investment banking at Credit Suisse, FH Capital is positioning itself to leverage its expertise to tap into this rising demand, building on JinkoSolar's established U.S. presence and technological prowess.

The broader renewable energy sector will likely observe the impact of this acquisition as it may prompt other players to enhance their U.S.-based manufacturing capabilities. By investing heavily in solar and storage solutions domestically, FH Capital is positioning itself as a key U.S. player as policies increasingly favor domestic energy production.

The transaction is subject to standard regulatory approvals and closing conditions, with Latham & Watkins providing legal counsel to FH Capital. Morgan Stanley Asia advised JinkoSolar financially, while legal advice was given by Cleary Gottlieb Steen & Hamilton. This new venture under FH Capital’s stewardship seeks to meet the escalating demand for high-performance renewable energy products in the U.S. market.