US-headquartered Valmont Industries has entered into a definitive agreement to sell its offshore wind business to Euro Steel, a Denmark-based supplier of steel products to the European wind market.
The value of the transaction has not been disclosed.
The offshore wind business, known as Valmont SM, was acquired by Valmont Industries in 2014.
Based in Rødekro, Denmark, Valmont SM is a provider of wind turbine towers and direct-drive generator rotor houses.
It is reported in the Renewable Energy product line in the company’s Infrastructure segment and expected to generate approximately USD 100 million of revenue in fiscal 2022.
”A critical aspect of our strategy is to focus our businesses in areas where we see the highest potential for global growth, scalability and value creation,” said Stephen G. Kaniewski , Valmont President and CEO.
”This transaction enables our Renewable Energy management team to focus exclusively on expanding our solar business, which has tremendous growth opportunities globally and better aligns with our strategy of delivering long-term value to our shareholders. I want to thank our Valmont SM associates for successfully facilitating the efforts to reshape the business toward more profitable growth. We are very pleased that the team will be working with a strong partner who has a shared vision to invest and grow the business to meet increasing market demand for larger turbine and structure sizes.”
Valmont Industries expects the transaction, which is subject to customary closing conditions, to be completed in the fourth quarter of 2022. The company plans to utilize the net cash proceeds from this transaction toward the repayment of short-term borrowings.
Valmont SM’s most recent contract within the offshore wind industry is an agreement with Siemens Gamesa to supply components for the next generation of rotor houses. The order has a minimum value of USD 209 million and is the largest in the company’s history.
Back in December 2021, Valmont SM signed an agreement with Port Esbjerg for an exclusive option to have the port build a large production facility for wind turbine towers.
Founded in 1988, Euro Steel Denmark supplies steel plates, beams, and other products to turbine manufacturers in European wind markets.