Siemens Gamesa said it has sold its renewable energy assets in southern Europe to SSE Renewables, a division of Scottish multinational energy company SSE. The deal announced Sept. 1 is for a 3.8-GW portfolio of projects, including onshore wind facilities in Spain, Italy, Greece, and France.
The agreement also includes potential opportunities for Siemens Gamesa to supply wind turbine technology and maintenance services to the projects, which are in various stages of development. The deal also includes the possible design and construction of as much as 1.4 GW of co-located solar power installations. Siemens Gamesa said about 50 of its workers would be integrated into SSE Renewables.
The deal is worth €613 million ($612 million), with €580 million as the purchase price, and €33 million in estimated working capital and net debt adjustments as of June 30 of this year, according to Siemens Gamesa.
“We are pleased to have successfully completed the transaction with SSE before the end of our fiscal year 2022, as announced in April. With this sale, Siemens Gamesa is optimizing its portfolio of assets and maximizing value,” said Jochen Eickholt, CEO of Siemens Gamesa. “We are confident that SSE is the right partner to develop the excellent portfolio of wind projects built over the years by our South European project development team, that will now also be part of SSE. This agreement will strengthen our relationship with SSE, as it will be beneficial for both companies.”
BofA Securities, CMS Albiñana&Suárez de Lezo and Deloitte acted as advisors to Siemens Gamesa on the transaction.
“We are delighted to have closed this transaction ahead of schedule and really excited to welcome new colleagues to the SSE Renewables business,” said Stephen Wheeler, managing director of SSE Renewables. “There is a fantastic local team in place who will help us build a long-term presence in Southern Europe developing, building and operating onshore wind, solar and storage infrastructure. We look forward to continuing to work with communities and stakeholders across the region to deliver the energy transition.”
—Darrell Proctor is a senior associate editor for POWER (@POWERmagazine).