Siemens Gamesa Renewable Energy (SGRE) has entered into an agreement to acquire selected European assets of Germany-based Senvion for €200m ($223m).
The acquisition includes a significant part of the European onshore service business of Senvion Group and all associated assets and operations.
It will also include the acquisition of an onshore blade production facility in Vagos, Portugal and Senvion’s intellectual property.
Following the completion of the transaction, nearly 2000 Senvion employees will join Siemens Gamesa.
SGRE chief executive Markus Tacke said: “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.”
The transaction will strengthen Siemens Gamesa’s position in the market
The transaction will strengthen the competitive position of the Spain-based wind turbine manufacturer in key European markets in the service and onshore segments.
Additionally, the assets will help to expand the company’s business mix and geographical exposure with contracts that offer long-term visibility and high renewal rates.
The purchase of the Vagos blade plant is expected to help strengthen SGRE’s industrial value chain and reduce dependency on supplier sourcing from Asia, lessening volatility risks due to uncertainties resulting from the current global trade issues, according to the company
Siemens Gamesa expects to complete the acquisition of assets in the first half of the fiscal year 2020 that starts from October 2019.
Senvion CEO Yves Rannou 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.”
For the transaction, Rothschild & Co is acting as financial adviser to Senvion.
