MUMBAI: Indian wind turbine maker Suzlon Energy (SEL) said on Friday that it had bought Belgium-based Hansen, the world���s second largest maker of wind turbine gearboxes, for e465m ($565m). This is the second largest foreign corporate takeover by an Indian company, after the acquisition of German drugs manufacturer Betapharm by Dr Reddy���s Laboratories for e480m ($570m).
Suzlon acquired Hansen through the takeover of holding firm EVE in an all cash transaction. This is Suzlon���s second overseas foray this week. It had announced on Thursday a $60m investment in a wind turbine manufacturing unit in China.
Sources said there were five companies in the race for EVE Holdings. However, the final race was between Suzlon, Denmark���s Vestas and private equity player Blackstone. Suzlon was the only Asian company in the race.The Hansen purchase has been financed through a syndicated loan from Britain���s Barclays Bank, Deutsche Bank and ICICI Bank. YES Bank was the sole financial advisor for the transaction, while Linklaters Oppenhoff & Radler, Cologne and Khaintan & Co acted as the legal counsel. UBS Investment Bank acted as financial advisor to the sellers, while Hengeler Mueller was their legal counsel.
The transaction is subject to regulatory approvals. Suzlon will acquire shares of Eve Holdings from private equity firm Allianz Capital Partners GMBH and its affiliates, and funds advised by Apax Partners Worldwide LLP.
The transaction was funded by a combination of Suzlon���s internal cash reserves and credit facilities.Tulsi R Tanti, chairman & managing director of SEL, said the acquisition of Hansen would make Suzlon a leading integrated wind turbine manufacturer in the world. ���Although the company will be run as an independent business unit, the acquisition of Hansen will allow us to integrate the gearbox technology into the total turbine solution, enabling us to introduce a more reliable and competitive product in the marketplace,��� he said.
According to Manisha Girotra, MD and chairperson, UBS Securities (India), ���Hansen has assembly and service centres across the world ��� the US, the UK, South Africa, Australia, Brazil, China and Japan. Suzlon can now use the brand name of Hansen to get an entry into the European markets. They could also replicate this in Asia.���
Aditya Sanghi, country head, investment banking, YES Bank, said Suzlon would use the technology to develop a suitable gear box facility for captive use in India. ���The acquisition fits well with Suzlon���s growth plans,��� he said. ���Suzlon has now emerged as a global player with significant market presence, manufacturing base and R&D centres across North America, Europe, India, China, South Korea and Australia. 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 to its customers,��� he added.
Hansen, sold by Invensys Plc to Allianz Capital for e132m in ���04, has subsidiaries in Britain, Australia, Brazil, the US and South Africa.Suzlon shares, which hit a new high of Rs 1,342 this week, were up nearly 2% at Rs 1,315 on the BSE. The company has an installed wind turbine generating capacity of 1.5-gigawatts.Hansen designs and manufactures wind turbine gearboxes in association with leading global wind turbine manufacturers. For the year ended March ���05, Hansen had total sales of 213m euros.
Suzlon acquired Hansen through the takeover of holding firm EVE in an all cash transaction. This is Suzlon���s second overseas foray this week. It had announced on Thursday a $60m investment in a wind turbine manufacturing unit in China.
Sources said there were five companies in the race for EVE Holdings. However, the final race was between Suzlon, Denmark���s Vestas and private equity player Blackstone. Suzlon was the only Asian company in the race.The Hansen purchase has been financed through a syndicated loan from Britain���s Barclays Bank, Deutsche Bank and ICICI Bank. YES Bank was the sole financial advisor for the transaction, while Linklaters Oppenhoff & Radler, Cologne and Khaintan & Co acted as the legal counsel. UBS Investment Bank acted as financial advisor to the sellers, while Hengeler Mueller was their legal counsel.
The transaction is subject to regulatory approvals. Suzlon will acquire shares of Eve Holdings from private equity firm Allianz Capital Partners GMBH and its affiliates, and funds advised by Apax Partners Worldwide LLP.
The transaction was funded by a combination of Suzlon���s internal cash reserves and credit facilities.Tulsi R Tanti, chairman & managing director of SEL, said the acquisition of Hansen would make Suzlon a leading integrated wind turbine manufacturer in the world. ���Although the company will be run as an independent business unit, the acquisition of Hansen will allow us to integrate the gearbox technology into the total turbine solution, enabling us to introduce a more reliable and competitive product in the marketplace,��� he said.
According to Manisha Girotra, MD and chairperson, UBS Securities (India), ���Hansen has assembly and service centres across the world ��� the US, the UK, South Africa, Australia, Brazil, China and Japan. Suzlon can now use the brand name of Hansen to get an entry into the European markets. They could also replicate this in Asia.���
Aditya Sanghi, country head, investment banking, YES Bank, said Suzlon would use the technology to develop a suitable gear box facility for captive use in India. ���The acquisition fits well with Suzlon���s growth plans,��� he said. ���Suzlon has now emerged as a global player with significant market presence, manufacturing base and R&D centres across North America, Europe, India, China, South Korea and Australia. 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 to its customers,��� he added.
Hansen, sold by Invensys Plc to Allianz Capital for e132m in ���04, has subsidiaries in Britain, Australia, Brazil, the US and South Africa.Suzlon shares, which hit a new high of Rs 1,342 this week, were up nearly 2% at Rs 1,315 on the BSE. The company has an installed wind turbine generating capacity of 1.5-gigawatts.Hansen designs and manufactures wind turbine gearboxes in association with leading global wind turbine manufacturers. For the year ended March ���05, Hansen had total sales of 213m euros.
