Vestas has announced that they have finalized a deal with VTC Partners GmbH, a German industrial
group which would see Vestas selling their 6 Manufacturing units to the group. This is part of the Major Wind Manufacturer's plan of turning around their fortunes.
The Units include 2 manufacturing facilities and four casting facilities and a total of 1000 employees will be transferred to the Group. The Deal included the signing of a
binding sales and supply agreement. The facilities are in Norway,
Sweden, Germany, China and Denmark. The agreement is subject to
customary closing conditions, including approvals from relevant
authorities in China. VTC is the owner of the Silbitz Group a leading
German-based casting group with an existing and proven supplier
relationship with Vestas.
Through this Deal, Vestas is to increase the flexibility of it's supply chain and to
secure a buyer that will ensure supply at the required quality and offer
reduced and competitive prices for casted components going forward.
“The divestment of our machining and casting units is part of the
plan to improve our capacity utilisation and to become a more
asset-light and scalable company,” says Jean-Marc Lechêne, Executive Vice President and COO of Vestas Wind Systems A/S, and continues: “In
outsourcing our machining and casting units, it was important to take
the time to find the right partner in order for both parties to benefit
from the industrial synergies. VTC will continue to operate with the
same high Vestas standards in relation to quality, reliability and
safety and I am pleased to say that we consider VTC to be the right
partner in all these aspects.
The transaction has been agreed at a sales price of EUR 1 plus an earn-out element for Vestas of up to EUR 25m. The divestment price implies a further write down of approx EUR 50m consisting of approx EUR 20m in assets held for sale and approx EUR 30m in net current assets.
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