Siemens Gamesa Renewable Energy announces today that it has reached an agreement to acquire a selection of assets of the Senvion group for an amount of 200 million euros.
The assets included in the transaction are a large part of Senvion’s onshore services business in Europe, including all the assets and operations necessary to offer a complete service to customers, all of Senvion’s intellectual property, as well as the wind turbine blade factory in Vagos, Portugal.
These service assets in Europe will strengthen the capacity and potential of Siemens Gamesa in this segment. The company will acquire the maintenance of a fleet of 8.9 GW, raising its portfolio of operation and maintenance services to about 69 GW. The incorporation of these assets reinforces the geographical and business diversification of Siemens Gamesa with contracts that offer long-term visibility and have historically very high renewal rates.
The onshore shovel manufacturing plant in the Portuguese town of Vagos is one of the most competitive in Europe. This facility will strengthen the industrial value chain of Siemens Games and reduce dependence on Asian suppliers, mitigating their exposure to existing volatility due to current commercial disputes. This plant complements the current capacity of Siemens Gamesa to meet the expected market demand. In addition, it has a first level supply chain and will help support international sales.
The intellectual property acquired from Senvion will allow Siemens Gamesa to further improve its technological offer for the future development of the company.
“This operation is an important step forward for Siemens Gamesa,” said Markus Tacke, CEO of the company. “Incorporating Senvion’s service assets will boost our growth in a key segment and improve our capabilities in Germany and other major European markets, while the shovel factory will help us mitigate risks in a difficult business situation. We are incorporating good professionals and good business into the company and that is a victory for all parties. ”
As part of this operation, about 2,000 Senvion employees are expected to join Siemens Gamesa.
Subject to the necessary regulatory approvals and reaching other closing conditions, Siemens Gamesa expects to close the acquisition in the first half of its fiscal year 2020 (October 2019- March 2020) so the operation will not have an impact on the financial results of the 2019 fiscal year.