Tuesday, January 21, 2020

SGRE Completes Senvion Purchase

January 9, 2020

Image: Siemens Gamesa Renewable Energy

The renewable energy major Siemens Gamesa Renewable Energy (SGRE) has finalized the acquisition of Senvion's European onshore service assets and intellectual property (IP).

The German-Spanish manufacturer said in a press release that it has a “robust integration plan” for the assets, which will add 9GW of machines in 13 countries to its service book, bringing the total to 69GW.

The addition of the Senvion assets marks an important step in the company’s growth strategy, part of the company’s L3AD2020 strategic program, and strengthens its competitive position in its multibrand portfolio.

Siemens Gamesa will now service an even broader range of wind turbine technologies. The Senvion service fleet will increase Siemens Gamesa multibrand footprint to more than 10 GW and its fleet under maintenance to approximately 69 GW.

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 been historically very high.

“This has been a unique opportunity for consolidation, a win for all parties and a perfect match for Siemens Gamesa. By integrating these assets and highly skilled professionals we will improve our position as a leading global service partner at a crucial moment for the wind industry´s growth. The transaction also offers Senvion’s customers a long-term solution for their servicing needs, following Senvion’s insolvency,” said Markus Tacke, CEO of Siemens Gamesa.

Siemens Gamesa has a strong and successful history of integrating companies, and has a robust integration plan for Senvion, as well as the financing lines and guarantees for this transaction, to ensure a successful operation from the first day.

Senvion Deutschland - and its European subsidiaries - were acquired as part of the transaction, and will now operate as a pure service provider within Siemens Gamesa Service Unit.

“This acquisition is an important part of our strategy to grow our multibrand service business. Now that we’ve successfully closed the transaction, we will focus on the integration and ensuring that operations continue smoothly,” said Mark Albenze, CEO of Siemens Gamesa’s Service business.

“By acquiring all relevant know-how and IP to access the SCADA and controller software, technical knowledge on spare parts supply and Senvion’s remote control center, we are well positioned to offer competitive service solutions to all of Senvion’s customers worldwide,” he added.

As initially communicated to the markets on October 21, 2019, Siemens Gamesa continues progressing on the closing actions related to the acquisition of all the shares in Ria Blades, S.A., entity which owns and operates the business of the wind turbine blades production facility in Vagos, Portugal, and certain additional assets associated to said business. The objective is still to close the Ria Blades acquisition before the end of March 2020.

As reported on the same date, and subject to closing accounts confirmatory adjustments, the price to be paid in cash for the shares of Senvion Services and Ria Blades amounts to €200 million.

Siemens Gamesa will update information on the acquisition and integration of Senvion assets on February 4 at the presentation of its First Quarter fiscal year results.

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