iemens Gamesa has entered into an agreement with SSE to sell South European renewables development assets for a total cash consideration of €580 million.
This sale includes a pipeline of onshore wind projects with a total capacity of 3.9GW in various stages of development in Spain, France, Italy and Greece, with the possibility to develop up to 1GW of co-located photovoltaic projects.
A team of around 40 persons from Siemens Gamesa, with strong sector experience in those countries, will be integrated in SSE as part of the agreement.
As part of the transaction, SSE Renewables will have the opportunity to partner with Siemens Gamesa on the provision of turbines and associated long-term maintenance services for a portion of wind farms installed and operated by SSE in the next few years coming from this sale.
“Today’s announcement demonstrates Siemens Gamesa’s capacity to optimize its portfolio of assets and maximize value. Our South European project development team has built an excellent and unique portfolio of wind projects in four countries over the years; as a result, there has been very strong market interest for this portfolio and we are confident SSE will be the right partner to develop these projects and integrate our employees,” says Jochen Eickholt, CEO of Siemens Gamesa.
“We are delighted to boost the delivery of SSE’s Net Zero Acceleration Programme by expanding our existing renewables business into Southern Europe through this acquisition. Mainland Europe is an exciting growth market for onshore wind, with clear carbon reduction targets and supportive policies, whilst the expert management team will complement our sector-leading capabilities perfectly. The project portfolio brings some excellent assets and will provide a real springboard for our expansion plans in Europe across wind, solar, batteries and hydrogen,” states Stephen Wheeler, Managing Director of SSE Renewables.
The closing of this transaction is expected to take place during Siemens Gamesa’s fiscal year 2022. Transaction closing is subject to customary regulatory approvals of the competent authorities. Purchase price consideration is subject to customary post-closing adjustments.
BofA Securities and CMS Albiñana&Suárez de Lezo acted as financial and legal advisors, respectively, to SGRE on the transaction.