Lennar to sell SunStreet solar division to Sunnova for $355M
Lennar Corp. (NYSE: LEN), which has a significant presence in Houston, will sell its residential solar power platform to Houston-based Sunnova Energy International (NYSE: NOVA) in a deal worth $354.5 million in stock.
Sunnova is buying SunStreet from Len X LLC, a subsidiary of the Miami-based homebuilder, for 7.22 million shares — 3.33 million upfront and 3.89 million earned over time. The deal should close during the second quarter.
Lennar also also agreed to a multiyear strategic partnership to make Sunnova the exclusive residential solar and storage provider in its new communities.
Sunnova is one of the nation's largest residential solar and energy storage companies, so its partnership with Lennar could bring clean energy to thousands of Lennar homes.
“The sale of SunStreet to Sunnova underscores our longstanding focus on and strategy around technology and ESG investment in Lennar’s future,” Lennar Executive Chairman Stuart Miller said. “This transaction, in exchange for Sunnova’s stock, represents a long-term investment by Lennar in the company that we believe is best suited to innovate and evolve in the dynamic and rapidly growing field of sustainable energy. We look forward to working with the exceptional team at Sunnova to build industry-leading solar products for a better future.”
In addition to selling to new homeowners, Sunnova said it could “upsell” its products to owners of the more than 250,000 homes Lennar has built over the last decade.
Meanwhile, Lennar’s Len X subsidiary will continue developing innovative energy technologies, such as home storage.
With blackouts impacting many parts of the country during extreme weather events, more homeowners are seeking ways to make their homes energy self-sufficient.
“Sunnova’s success is built on strong partnerships and shared vision, and this transaction will be no different, thanks to our complementary strengths and mutual desire to transform the energy landscape,” Sunnova CEO William J. (John) Berger said. “This agreement will allow Sunnova to increase customer growth, further scale the business, and develop smart microgrids for communities across the U.S.”