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Belgian tailwind for Suzlon Energy

Hansen Transmissions is the world’s second-biggest gearbox maker, a crucial input for wind turbines.

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MUMBAI: Tulsi R Tanti’s Suzlon Energy Ltd took a big leap on the global stage when it acquired Belgium’s Hansen Transmissions International NV, one of the largest wind energy and industrial gearbox manufacturers in the world, for Rs 2,547 crore, in an all-cash transaction, gaining control of its crucial gearbox unit, which will allow the Indian wind turbine company access to world-class technology.

Hansen Transmissions is the world’s second-biggest gearbox maker, a crucial input for wind turbines.

Hansen founded in 1923 had total sales of Rs 1,128 crore and its primary manufacturing facilities are in Belgium, with sales, assembly and service centres in the UK, US, South Africa and Australia.

It employs 1,200 engineering and management professionals spread across these establishments. Hansen’s current manufacturing capabilities include 3,600 mw of wind turbine gearboxes and 3,000 units of industrial gearboxes per year.

“The acquisition of Hansen gives us technological leadership and will make Suzlon a leading integrated wind turbine manufacturer in the world,” said Tulsi Tanti, CMD of Suzlon Energy.

While, Hansen will be run as an independent business unit, the acquisition of Hansen will allow Suzlon to integrate gearbox technology into the total turbine solution enabling a more reliable and competitive product in the market place.

The big-ticket acquisition comes a day after the world’s largest wind turbine company announced plans to set up a production hub in China to feed surging global demand for a renewable source of energy generation.

Suzlon will spend Rs 270 crore to build the plant with a capacity to make equipment and components with an annual power generating capacity of 600 mw.

The China plant, is being built by wholly owned subsidiary Suzlon Energy (Tianjin) Ltd.
Suzlon said that it’s wholly owned subsidiary AE-Rotor Holding BV will buy the gearbox maker Hansen Transmissions International NV.

Hansen has a proven track record in developing new products with the research and engineering capability needed for the new generation of larger wind turbines.

From Pune, Suzlon’s operational headquarters the company informed that its subsidiary will buy the stake from private equity firm Allianz Capital Partners GmbH and its affiliates.

Suzlon intends to fund the transaction using a combination of Suzlon’s internal cash reserves and credit facilities.

Matts Lundgren, president and CEO, Hansen said, “The deal has the ability to fuel further growth in Belgium and in Asia. At Hansen we will have business as usual, managing ourselves as an independent business unit”.

The funding of this transaction is underwritten and syndicated by Barclays Capital, Deutsche Bank and ICICI Bank.

After his company listed, Tulsi Tanti, whose family’s business ventures before Suzlon included cold storage chains and cinema halls has practically leaped into the list of very wealthy Indians.

Yes Bank was the sole financial adviser on the transaction, while Linklaters Oppenhoff & Radler, Cologne and Khaintan & Co provided legal advice.

“With a presence across the entire turbine technology chain, we see Suzlon becoming further cost competitive and providing an efficient and robust wind energy solution,’’ Aditya Sanghi, country head, investment banking, Yes Bank, a financial adviser to the sale, said in the statement.

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