Valmont selling offshore wind business to Danish steel products supplier

Valmont Industries Inc (NYSE:VMI), the US-based engineered products and services provider that makes wind turbine towers and direct-drive generator rotor houses, has decided to sell its offshore wind business in order to focus on expanding its solar operations.

The company said on Monday it has signed a definitive agreement to sell the particular business to Euro Steel Danmark A/S, a Danish supplier of steel plates, beams and other products to turbine manufacturers in European wind markets. The value of the deal was not disclosed.

“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,” said Stephen G Kaniewski, Valmont's president and CEO.

The business being sold, known as Valmont SM, was acquired in 2014 and is situated in Denmark. It is seen to generate some USD 100 million (EUR 96.9m) in revenue in fiscal 2022.

Valmont expects the transaction to close by the end of the year and to generate a GAAP diluted loss per share in the range of USD 1.20-1.45, almost all of which is attributed to a non-cash accumulated currency translation loss.

The seller intends to use the net cash proceeds from the disposal to repay short-term borrowings.

(USD 1 = EUR 0.969)

Choose your newsletter by Renewables Now. Join for free!