Suzlon sells Senvion for €1bn
German turbine manufacturer snapped up by private equity firm
Indian wind company Suzlon Energy is selling its German turbine manufacturer subsidiary Senvion to a private equity firm for €1bn.
The Pune-based company entered into a “definitive agreement” this morning with Centerbridge Partners LP, a group with offices in London and New York.
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The €1bn equity value all-cash transaction also includes a “future earn out of up to an additional €50m”.
It is proposed that Senvion will give Suzlon the licence for offshore turbine technologies for the Indian market. In return Suzlon would give Senvion the S111-2.1 MW licence for the USA market, if agreed.
“The 100% stake sale of Senvion SE is in line with Suzlon’s strategy to reduce the debt and focus on the home market and high growth markets like the USA and emerging markets like China, Brazil, South Africa, Turkey and Mexico. The transaction is expected to be closed before the end of the current financial year,” Suzlon said in a statement.
Completion of the sales agreement signed this morning in Mumbai is subject to receipt of anti-trust approvals.
Suzlon Group chairman Tulsi Tanti (pictured) said: “We are pleased to announce this development, which is in line with our strategic initiative to strengthen our balance sheet. The proceeds would be used for debt repayment, thereby reducing interest cost and augment business growth.”
Senvion chief executive Andreas Nauen added: “With Centerbridge, Senvion has gained a financially strong and committed investor – an important step to facilitate its growth track.
“Supported by Centerbridge, we will be able to realise Senvion’s full potential in the wind-energy market. With its product portfolio and market position, our company is ideally placed for future development.
“Successful energy reform on a global level requires both onshore and offshore wind power, and Senvion has the right turbines to support both. Our objective is to continue growing profitably and to gain additional market share in our top five markets in Germany, Great Britain, Australia, Canada and France, as well as in our target markets.”
Nauen said Senvion also aims to “maintain a strong position in the offshore sector”.
Centerbridge managing director Stefan Kowski said: “Senvion is a company with impressive technology and leading market positions. The global market environment for renewable energies is promising for a wind turbine manufacturer, particularly for one of the most experienced players in the industry with onshore and offshore capability.
“We are confident that Senvion will continue its track record and, together with the company’s management, we look forward to supporting its continued development as a profitable and growing company.”