Vestas has acquired a 25.1% minority stake in Sowitec, a renewable energy developer based out of Germany.
Vestas has an option to acquire the entire company within three years. Sowitec has roughly 60 wind and solar projects totaling more than 2.6 GW across the globe.
“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,” says Juan Araluce, Vestas’ chief sales officer. “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.”
Frank Hummel, CEO of Sowitec, adds, “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.”
Based on Sowitec’s experience within solar PV project development, the acquisition also strengthens Vestas’ offering within hybrid power plant solutions.
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 finalized during the second quarter; it will have no significant impact on Vestas’ earnings.