October 21 (Renewables Now) - Siemens Gamesa Renewable Energy SA (BME:SGRE) has agreed to buy 8.9 GW of onshore wind service assets in Europe, a plant in Portugal and intellectual property from struggling wind turbine maker Senvion SE (ETR:SEN) in a EUR-200-million (USD 223.1m) deal.
The transaction will cover “a large part” of the European Onshore Service Business of Senvion, as well as related service assets and operations of the debt-laden German company. Senvion's intellectual property and its onshore blade production facility in Vagos, Portugal, are also included, Siemens Gamesa said on Monday.
The deal follows a non-binding exclusivity agreement between the two firms announced in September.
The addition of the Senvion service fleet will expand Siemens Gamesa’s portfolio under maintenance to almost 69 GW. The buyer noted that the move will enable it to diversify its business mix and geographical reach. The purchase of the Vagos manufacturing site, on the other hand, will help it strengthen its industrial value chain and lower its dependency on supplier sourcing from Asia.
"The highly competitive facility is complementary to existing SGRE blade capacity, has a best-in-class operational features and will help to support international sales," Siemens Gamesa said.
The acquisition is pending regulatory clearance and, according to Siemens Gamesa, is expected to be finalised by March 2020. It will have no impact on the firm's financial results for the current fiscal year.
About 2,000 of Senvion’s employees will become part of Siemens Gamesa when the transaction is completed.
Senvion GmbH, the main unit of Germany’s Senvion, filed for self-administration proceedings in April as it was unable to agree on any financing options to secure the continuation of its operations. At the time of announcing the exclusivity negotiations with Siemens Gamesa, it said it was still holding talks with investors for the remaining business areas.
(EUR 1.0 = USD 1.115)