India's Suzlon sells German unit to Centerbridge

The asset sell-off - which includes an additional earn-out of up to EUR50 million - is an attempt by Suzlon to unshackle itself from about $2.6 billion of debt resulting from a decade-long buyout binge. The sale will also help the company re-focus on its home market as well high-growth jurisdictions such as the US, and emerging countries including China, Brazil, South Africa, Turkey and Mexico, Suzlon said in a statement.

Hamburg-headquatered Servion manufactures and markets onshore and offshore wind turbines with rate outputs of 1.8-6.15 megawatts and rotor diameters of 82-152 meters. The company has 3,400 employees and claims to have installed 5,800 turbines worldwide.

Under the terms of the agreement, Senvion will give its former parent licenses for offshore technologies for the Indian market, while Suzlon will give its former subsidiary the license for S111-2.1 MW - the company's next-generation wind turbine - for the US market.

"Senvion is a company with impressive technology and leading market positions," said Stefan Kowski, managing director, at Centerbridge. "The global market environment for renewable energies is promising for a wind turbine manufacturer, particularly for one of the most experience players in the industry with onshore and offshore capability."

Suzlon first took control of Senvion - then REpower System - in 2007, eventually acquiring the company outright in 2011 for an aggregate EUR1.8 billion. It is one of a number of India companies still shedding assets to pay off debt dating back to the pre-global financial crisis period.

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• Topics
• Cleantech
• South Asia
• Buyouts
• Europe
• Cleantech
• Centerbridge Capital Partners
• India
• buyout
• Europe