Siemens Gamesa Renewable Energy announced that it has reached agreement to acquire selected European assets of Senvion Group for EUR 200 mln.
The assets included in the transaction are a large part of the European Onshore Service Business of Senvion Group and all associated assets and operations to provide full service, all the Intellectual Property of Senvion, as well as the onshore blade manufacturing facility in Vagos, Portugal.
Senvion’s European service assets will strengthen Siemens Gamesa’s capacity and potential in an important segment. The acquisition of a Service fleet of 8.9GW from Senvion will take Siemens Gamesa to a total of nearly 69GW under maintenance. The addition of these assets helps to diversify Siemens Gamesa’s business mix and geographical exposure with contracts that offer long-term visibility and renewal rates that have historically been very high.
The onshore blade manufacturing plant in Portugal is one of Europe’s most competitive manufacturing facilities. The Vagos plant would help to strengthen Siemens Gamesa’s industrial value chain and reduce dependency on supplier sourcing from Asia, mitigating volatility amid the uncertainties brought about by current trade issues. The highly competitive facility is complementary to existing SGRE blade capacity, has a best-in-class operational features and will help to support international sales.
The intellectual property of Senvion allows Siemens Gamesa to further enhance its technology portfolio for future Siemens Gamesa development.
“This transaction is an important step forward for Siemens Gamesa,” said Markus Tacke, Chief Executive Officer. “Bringing Senvion’s service assets on board will help us to drive growth in a key market segment and add important capacity in Germany and other important European markets, while the blade factory helps us mitigate the risk in the difficult trade environment. We’re bringing good people and good business into the company and that’s a win for all parties.”
Yves Rannou, CEO of Senvion, said: ‘We are pleased that we have been able to give our colleagues in a large part of the European Onshore Services business and in our blade production facility in Portugal positive news today, securing close to 60% of all jobs for now. Siemens Gamesa will be a safe new home for them. We are also confident that this a good solution for our service customers.’
‘This has been a long and demanding path in a challenging context and in the face of many difficulties, but I am very confident that the business is well-positioned under the new ownership. The new environment will protect the critical competencies and skills that were developed at Senvion and enable our employees to make long-term and valuable contributions to the energy transition.’
‘We are thankful to our customers who stayed with us during this time and continued to show faith in our capabilities and to the financial institutions whose support allowed us to realise this transaction. I also appreciate the constructive approach SGRE has shown throughout the negotiations and their dedication towards the transaction. Finally, I sincerely thank everyone who made Senvion what it was for decades: a pioneer in the provision of clean power to the world. We will now continue our efforts to pursue potential options for other business parts to find solutions for as many employees as possible.’
As part of the acquisition, approximately 2,000 Senvion employees are expected to join Siemens Gamesa.
Subject to obtaining the necessary regulatory approvals and achieving other closing conditions, Siemens Gamesa expects to close the respective acquisition of assets in the first half of the fiscal year 2020 (October 2019 – March 2020), and as a result it will have no impact on financial performance in fiscal 2019.
Senvion develops, produces and markets wind turbines for almost any location – with rated outputs of 2 MW to 6.33 MW and rotor diameters of 82 metres to 152 metres. Furthermore, the company offers its customers project specific solutions in the areas of turnkey, service and maintenance, transport and installation, as well as foundation planning and construction. The Senvion systems are mainly designed in the major TechCenters in Osterrönfeld and Bangalore and manufactured at its German and Portuguese plants in Bremerhaven, Vagos and Oliveira de Frades as well as in Żory-Warszowice, Poland and Baramati, India. With approximately 3,500 employees worldwide, the company makes use of the experience gained from the manufacture and installation of more than 8,200 wind turbines around the world. The company’s operational subsidiary Senvion GmbH is based in Hamburg and represented by distribution partners, subsidiaries and participations in European markets such as France, Belgium, the Netherlands, the UK, Italy, Romania, Portugal, Spain, Sweden, and Poland as well as on a global level in the USA, China, Australia, Japan, India, Chile and Canada.