Blackstone Group LP and other Vivint Solar Inc. owners will reap about a $1.2 billion gain from the sale of the solar-panel installer to SunEdison Inc.
SunEdison, a renewable energy company, said in a statement Monday that it will buy Vivint Solar for $2.2 billion in cash and securities. Vivint Solar holders will receive $16.50 a share, consisting of $9.89 in cash, $3.31 in SunEdison stock and $3.30 in convertible notes, according to the statement.
Investors led by Blackstone, the world’s largest private equity firm, will receive $1.36 billion in cash and securities. That’s about seven times the $195 million that the group, which includes Summit Partners, invested in Vivint Solar starting in late 2012, according to regulatory filings.
Vivint Solar was created almost four years ago as a unit of Vivint Inc., a provider of home-security services and technology. Blackstone and other backers acquired the then-parent company’s three main assets in a $1.9 billion leveraged buyout in 2012, investing $714 million of equity. Blackstone owns about 73 percent of Vivint, according to a filing.
Blackstone, which oversees $333 billion in private equity, real estate, credit assets and hedge funds, has steadily sold investments to capture gains as stock markets have risen. In the second quarter, the firm reported distributable earnings, which reflect cash gains on sales, of $1 billion, up 35 percent from the same period in 2014. The exits included stakes in audience tracker Nielsen NV, medical devices maker Biomet Inc. and Pinnacle Foods Inc.
Blackstone spokesman Peter Rose didn’t immediately respond to a request for comment.