Germany

Germany

SGRE and Senvion agree European wind asset deal

Siemens Gamesa Renewable Energy (SGRE) has reached an initial agreement to acquire Senvion's European business including all intellectual property, most of its onshore servicing operations, and a blade factory.

SGRE expects to close the acquisition of Senvion's assets by March 2020
SGRE expects to close the acquisition of Senvion's assets by March 2020

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The acquisition of 8.9GW of Senvion's onshore service portfolio in Europe brings SGRE’s fleet under maintenance to nearly 69GW.

Meanwhile, the acquisition of Senvion’s entire intellectual property portfolio will boost SGRE’s multi-brand service offering, the Spanish manufacturer said.

SGRE will acquire Senvion’s assets — which also includes an onshore blade manufacturing facility in Vagos, Portugal — for €200 million.

SGRE expects to close the acquisition by March 2020, subject to regulatory approvals.

Markus Tacke, CEO, said the addition of the blade factory to the deal would help "mitigate the risk in a difficult trade environment".

He explained that it would improve SGRE's ability to "make, rather than buy blades". This would reduce SGRE's dependency on the Asian market, he added.

Tacke added that SGRE would continue to look at acquisitions of Senvion's assets outside of Europe, but that the initial, solely European deal was struck to reduce its complexity.

The acquisition would cover a "majority" of Senvion's onshore service portfolio in Europe, Tacke said, rather than its entirety. He added that taking on Senvion's entire European service portfolio would have been counter to SGRE's efforts to avoid complexity and risk when making the deal. 

A Senvion spokesman told Windpower Monthly in September that the manufacturer likely services more than 10GW of its 14GW-plus European fleet.

In September, Senvion’s creditors gave SGRE exclusive rights to pursue negotiations for the sale. 

At the time, a Senvion spokesman confirmed that SGRE would not be taking on any of the German company’s debt.

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