Power play

Mumbai, March 17: Suzlon Energy, the Pune-based wind turbine manufacturer, is acquiring Hansen Transmissions International NV (Hansen) based in Belgium for an enterprise value of 465 million euros ($565 million) in an all-cash transaction. Hansen is one of the largest wind energy and industrial gearbox manufacturers in the world.

AE-Rotor Holding BV, the Netherlands-based subsidiary of Suzlon, will acquire the shares of Eve Holding, the holding company of Hansen, from private equity firms Allianz Capital Partners GmbH and its affiliates and Apax Partners Worldwide LLP.

Suzlon will fund the transaction from its cash reserves and through loans. Finance for the transaction is being underwritten and syndicated by Barclays Capital, Deutsche Bank and ICICI Bank.

The Hanson acquisition reflects Suzlon?s ambitions in the overseas markets. The company has a presence in Australia, the EU, India, South Korea and the US.

On Thursday, Suzlon announced it will set up a wind turbine generator (WTG) facility in Tianjin, China. The proposed facility will be a design as well as a manufacturing hub. To be set up over 250000 square metres, the facility will make wind turbine generators and its components. It will also include a technology and design centre.

Suzlon Energy chairman and managing director Tulsi R Tanti said: ?The acquisition of Hansen gives us technological leadership and will 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 gearbox technology into the total turbine solution enabling a more reliable and competitive product in the marketplace.?

He said Suzlon also sees great scope in the market for industrial gearboxes and wants to capitalise on Hansen?s strong presence in this segment. Tanti had recently made it to the Forbes? billionaire list.

Set up in 1923, Hansen is a market leader in gear boxes and drive trains, with strong research capabilities. It has targeted the wind turbine generation sector for expansion and is also active in other industrial segments of the gearbox market.

The company has its primary manufacturing facility in Belgium, with sales, assembly and service centres in the UK, the US, South Africa and Australia.

The company employs 1200 engineering and management professionals at these establishments.

Hansen has the capacity to manufacture 3600 mw of wind turbine gearboxes and 3000 units of industrial gearboxes per year.

The company also provides customised products and drive package solutions.