The acquisition is expected to be finalised during the second quarter of 2019 and will have no significant impact on Vestas earnings.
To support Vestas’ strategy and increase its capability to partner with its customers in project development in selective markets, Vestas has announced the acquisition of a 25.1 percent minority stake in Sowitec with an option to acquire the entire company within the next three years.
Headquartered in Germany, Sowitec is a leading sustainable energy developer with around 60 wind and solar projects totalling more than 2,600 MW across the globe. By investing in Sowitec, Vestas is hoping to enhance its ability to offer full-scope sustainable energy solutions by tapping into Sowitec’s proven offering within development services.
Juan Araluce, Vestas’ Chief Sales Officer said, “With the acquisition of a minority stake in Sowitec, Vestas gains access to an independent development entity that strengthens our co-development portfolio and improves our solutions and capabilities in strategic markets in Latin America. Vestas is continuing to invest in solutions and capabilities that increase our ability to meet our customers’ evolving needs and to partner with them through the energy transition.”
Based on the German developer’s proven track record within solar PV project development, the acquisition also strengthens Vestas’ offering within hybrid power plant solutions. With sustainable energy’s share of the energy mix set to grow from around 10 percent today to more than 30 percent by 2035, hybrids are a key part of Vestas’ objective to develop sustainable energy solutions with wind at their core.
Frank Hummel, Sowitec CEO said, “We are proud to have Vestas as a strategic partner that further strengthens our equity and helps us to go further in the value chain. Together with our strong track record in emerging markets and our vast experience in developing utility-scale renewable energy projects, this partnership will help Sowitec grow faster and give us the chance to profit from Vestas’ worldwide experience and presence.”
On a stand-alone basis, Sowitec is expected to report 2018 consolidated revenues of approximately EUR 30 million. The acquisition, which is subject to regulatory approval, is expected to be finalised during the second quarter of 2019.