German wind turbine manufacturer Senvion is once again on the acquisition radar with fresh buyers weeks after the company filed for bankruptcy.
According to media reports, Toshiba, Siemens Gamesa, and Blackstone are looking to acquire Senvion. The reports do not provide any other details about the proposed acquisition except that the buyers are interested only in the company’s assets and not the holding company.
This is not the first time that Senvion, earlier REpower, is being eyed by competitors or private equity funds. The company was first acquired in 2007 by an Indian wind energy solutions provider Suzlon Energy. The deal size at that time was €1.3 billion and gave a massive footprint and access to Suzlon Energy to the European market. More significantly, Suzlon Energy also gained access to offshore wind energy technology. France’s energy group Areva had also made an offer for REpower in 2007 but Suzlon Energy emerged as the final buyer.
In hindsight, the acquisition was ill-timed with a looming global economic slowdown. Suzlon persevered with Senvion until early 2015 when the former’s shareholders approved the sale of the German turbine marker. Suzlon Energy had been reeling under tremendous financial strain as India was flooded with international competitors like GE and Gamesa.
Shares of Suzlon Energy, listed at the Bombay Stock Exchange as well as the National Stock Exchange in India, has lost almost 99% of their value since the all-time high of Rs 425 due to falling revenue and rising losses and debt. By the time Suzlon Energy completed the sale of Senvion to Centerbridge Partners Suzlon Energy shares were trading at just 6% of their all-time high price. Suzlon Energy sold Senvion to the US-based private equity fund at €1 billion.
In early 2016 Senvion announced plans to launch operations in India. The company acquired a small Indian turbine manufacturer Kenersys to achieve this. Senvion announced last year that it had created an order book of 1 gigawatts in India.
Senvion is a known entity for Toshiba as the two companies had formed a strategic wind alliance in Japan. As per the terms of the alliance Toshiba Energy Systems & Solutions is responsible for the customer interface and installation, with Senvion providing the turbine technology, operation and maintenance services and technical support.