Hamburg – Conergy AG has sold its wind turbine generator business „Conergy Wind“ to Warburg Pincus, the global growth investor. With this divestment, the company executes a further step in the reorganization process to become a focused provider of downstream photovoltaic products and services. The sale will result in a one-time, largely non-cash write-off of approximately € 35 million from „discontinued operations“. The transaction is subject to the approval of the responsible competition authorities as well as certain other conditions, whose fulfilment is not assured. The parties have agreed to not disclose the purchase price.
As part of the restructuring program, the Executive Board had identified a range of businesses as non-strategic – and had decided to discontinue them in the future. „Conergy Wind“ was part of these discontinued operations. Through Conergy Wind, the company had developed and launched production and sale of the PowerWind 56, a 900kW wind turbine generator. After intense negotiations with several parties, Warburg Pincus, the global growth financer, was selected, who will acquire the entire business operations of Conergy Wind, including development, sales, and the production facility at Bremerhaven. All 64 jobs will be transferred to the acquiring entity and will be kept.
Sale constitutes one of the remaining significant milestones in the realignment
The sale will result in a one-time, largely non-cash write-off of approximately € 35 million from „discontinued operations“. However, the continued development of the wind turbine operations would have bound significant liquidity of Conergy AG, as it had in the past, which now becomes available. Through the transaction Conergy thus increases its flexibility and gains additional headroom for the expansion of its downstream photovoltaic business. Conergy CEO Dieter Ammer commented: „We are glad to have found a qualified new owner for this large division. With this transaction, we have achieved one of the last major milestones in our realignment of the Conergy Group.“
Warburg Pincus: “Great Potential at Conergy Wind”
Henry Makansi, responsible for Warburg Pincus’ energy sector investments in Europe commented: „Warburg Pincus’ extensive experience in the energy and manufacturing sectors enabled us to recognize the great potential of Conergy Wind and to execute the transaction expeditiously. We are excited to work together with management in developing the company in this attractive growth market over the coming years.
Dr. Klaus Pötter, managing director of Conergy Wind GmbH, who, together with his colleague Stefan Heczko, will also serve as managing director of the new company, commented on the transaction: "We are looking forward to working with Warburg Pincus as a strong financial backer. The firm’s investment philosophy with a focus on long-term value creation, the extensive industry network, and the decade-long international experience especially in the energy sector make Warburg Pincus an outstanding partner with whom we want to execute our ambitious growth plan.“
Conergy Group: Majority of non-strategic operations divested
In addition to the utility-scale wind turbine production, Conergy AG has also divested its „small wind turbine“ business. Its „EasyWind“ product line was predominantly employed in small commercial operations as grid-independent power supply in Europe as well as in emerging countries. The new owner comes from the wind power industry and possess long-term experience in both the German and international markets. The current inventory, as well as the production capacity until year-end, have already been sold to the new investor.
With the two successful divestments, Conergy has disposed of all of its wind turbine production activities. Except for two of its subsidiaries, Conergy has now successfully sold all of the non-strategic activities that were identified in the restructuring program. The group plans to sell the two remaining entities until the end of 2008. It is expected that the Group will realize a positive contribution from these planned sales.
About Conergy
Since its founding in 1998, Hamburg-based Conergy AG has sold more than a gigawatt in renewable energy, making it one of the biggest European suppliers of solar energy and other renewable energies, and a world leader in solar system integration. Of the one gigawatt in renewable energies, Conergy has installed more than 400 megawatts in its major projects, Of the total one gigawatt, 200 megawatts falls to its wind energy park projects and 800 to its globally marketed solar modules. According to the German Solar Industry Association (BSW) this is just under a fifth of the entire installed photovoltaic output in Germany. Calculative one in ten modules worldwide was produced, sold or installed by Conergy.
Listed on the Frankfurt Stock Exchange since 2005, the group pursues a global growth strategy, The company now produces, installs and designs solar power systems and wind turbines in around 20 countries. The Conergy Group is represented with its own branches on five continents.
About Warburg Pincus:
Warburg Pincus has been a leading private equity investor since 1971, with currently more than $35 billion of assets under management. The firm has raised twelve private equity funds that have invested more than $29 billion in over 600 companies across more than 30 countries in North America, Europe and Asia. Warburg Pincus has invested over $3 billion in more than 30 companies focused on the energy-sector worldwide. These companies are active in areas such as oil & gas exploration, power generation, and renewable energy, including both project development as well as industrial manufacturing.Warburg Pincus is an experienced partner supporting entrepreneurs in creating value by building successful and significant enterprises.The firm has more than 125 active portfolio companies that it works with through its offices in Beijing, Frankfurt, Hong Kong, London, Mumbai, New York, San Francisco, Shanghai and Tokyo. For more information, please visit www.warburgpincus.com.
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Press Queries Conergy
Alexander Leinhos
Head of Public Relations
Conergy AG
Anckelmannsplatz 1
D 20537 Hamburg
Tel. +49 40 27142 1636
Mob. +49 171 5 535 927
Fax +49 40 27142 1639
a.leinhos@conergy.de
www.conergy.de |
Press Queries Warburg Pincus
Todd Fogarty and Joseph Kuo
Kekst and Company
Tel.: +1 212 521 4854 or +1 212 521 4863
todd-fogarty@kekst.com
joe-kuo@kekst.com
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DISCLAIMER:
This communication is neither a prospectus nor does it constitute an offer to sell or the solicitation of an offer to purchase the shares or other securities of Conergy AG and it does not substitute the prospectus. Subject to the approval by the German Financial Supervisory Authority a securities prospectus will be published prior to the offer period and made available free of charge by Conergy AG and the coordinators. The shares will be offered exclusively on the basis of the prospectus required to be approved by the German Financial Supervisory Authority.
This communication is not an offer of securities for sale in the United States of America. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”).Any public offering of securities to be made in the United States of America will be made by means of a prospectus that may be obtained from Conergy AG and that will contain detailed information about the company and management, as well as financial statements. Conergy AG does not intend to register any part of the offering in the United States.
The information contained in this communication is not for publication or distribution in or into the United States of America, Canada, Australia or Japan and does not constitute an offer of securities for sale in the United States of America, Canada, Australia or Japan.
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