Siemens Gamesa Renewable Energy has completed the acquisition of insolvent Senvion’s European service assets and intellectual property that was first announced in October, adding a massive 9GW to its serviced fleet and operations in 13 countries.
“This has been a unique opportunity for consolidation, a win for all parties and a perfect match for Siemens Gamesa,” said Siemens Gamesa chief executive Markus Tacke.
“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.”
The assets will increase Siemens Gamesa’s multi-brand footprint to more than 10GW and its overall fleet under maintenance to about 69GW, diversifying the OEM’s geographical exposure in a business segment that offers long-term visibility.
Industry experts see the purchase as a smart move to grow in a segment that provides a more steady income than the core turbine business itself, which has become under pressure from falling prices amid ever more competitive auctions.
"The service business right now is the gold standard for wind manufacturers," IHS analyst Indra Mukherjee told Recharge.
"Margins for the wind turbines business have been squeezed considerably, but services margins still remain high, even above 20%. The annuity like nature of revenues also provides a lot of long-term predictability, which is a big plus"
As part of the transaction, Siemens Gamesa has also bought Senvion Deutschland, and its European subsidiaries, which will now operate as service provider within the 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, chief executive 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.”
IHS's Mukherjee said the purchase of Senvion's intellectual property seems to be more driven by the fact that Siemens Gamesa requires this IP to effectively service Senvion wind turbines, and not because they want to add any particular Senvion turbine model to their portfolio.
Siemens Gamesa also said it continues progressing on the closing actions related to the acquisition of the Ria Blades wind turbine blade factory in Vagos, Portugal. The OEM plans to close the Ria Blades acquisition before the end of March.
Siemens Gamesa will pay a combined €200m ($222m) for Senvion Services and Ria Blades.
Senvion said that with the two transactions, some 70% of Senvion jobs will be secured.
"Being able to complete this part of the transaction today is an important achievement after a prolonged and difficult period of uncertainty. We have been able to secure around 70% of all jobs at Senvion with this transaction,” Senvion chief executive Yves Rannou said.
“I am convinced that Siemens Gamesa will be a good new home for all employees transferring there today. I am also proud that Senvion and the knowledge and skills developed at here will live on this way and continue to contribute to the future of energy.”
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