Indian wind turbine maker Suzlon Group has announced it has reached an agreement to sell its German business to private equity firm Centerbridge Partners for €1 billion.
The all-cash sale of the 100% stake in Senvion SE is in line with the company’s plan to reduce its debts and focus on other high-growth regions like the United States and other emerging markets.
Mr Tulsi Tanti, Chairman of Suzlon Group said,
We are pleased to announce this development which is in line with our strategic initiative to strengthen our Balance Sheet. The proceeds would be used for debt repayment thereby reducing interest cost and augment business growth.
Senvion is located in Hamburg, Germany and manufacturers both onshore and offshore wind turbines, with the company employing over 3,400 staff. Following the deal, Suzlon will retain Senvion’s license for offshore technologies in the Indian market.
The transaction, as always is subject to regulatory approval and is expected to close before the end of Suzlon’s current fiscal year, which ends in March.