Gamesa reaches an agreement with 3i to invest in its advanced services company

07 Apr 2006

3i, Europe's leading private equity company and one of the largest companies in this sector in Spain, has concluded an agreement to purchase 100% of the share capital of Gamesa Energía y Servicios, S.A. and Siemsa Este, S.A., divisions of Corporación Tecnológica Gamesa. The company specialises in the construction and maintenance of wind farms and has a diversified petrochemical automation, construction and maintenance business. The transaction is subject to approval from the Spanish competition authorities.

The enterprise value of GES is approximately €170m.  In 2005, the company had sales of €210m and EBITDA of €19m.

Through this transaction, 3i will support the international expansion planned by GES to strengthen its presence in countries such as the United States, the United Kingdom and Italy. This provides the company with a great opportunity to consolidate its market leading position in its industry by creating a truly independent expert in its field.

Strengthening the international operations of the business should lead to a significant increase in sales over the next three years. GES has an outstanding reputation both inside and outside Spain, and has an impressive client list in the energy business including Repsol, Cepsa and Shell.

3i was attracted to this deal due to the strong and experienced management team at GES and the growth prospects for the international wind energy business which has grown almost 30% annually over the last five years and is expected to continue to flourish.

GES is the international leader in wind farm construction and maintenance. The company was founded in Spain in 2000 and is well positioned in Germany, Italy and Portugal, where the development and implementation of wind energy is already well established. In addition, Gamesa has started to establish itself in other countries, such as the United Kingdom and the United States and is also active in Egypt, Morocco and Mexico.

Advisors on the transaction included; 360 Corporate Finance as 3i's financial advisor, KPMG conducted the financial due diligence, and ERM provided environmental due diligence. Legal advice was provided by Araoz y Rueda.

Notes to editors

About 3i

3i is the venture capital leader in Europe, its aim being to invest in companies with motivated management teams and a successful business model. It works with them to generate value through strategic support, synergies with the portfolios in which it has holdings and the sharing of knowledge through its network of contacts and offices. It focuses on buyout operations and growth capital combining size, quality, growth opportunities and the chance to align interests.

In its 60 years of experience, 3i has invested €24,500 million and enjoys an international network with a presence in 14 countries in Asia, the United States and Europe. 3i began its Spanish operation in 1990. Since then, it has invested over €1,000 million from its Madrid and Barcelona offices. Its main investments include operations in Hospor, Sistemas Informáticos Abiertos, Ballesol, Pepe Jeans, Esmalglass, Rodman, Renta Corporación, La Sirena and Clínica Baviera.

About 3i Oil, Gas and Power business

3i has funded 24% of all European oil & gas private equity deals in the last three years and manages an investment portfolio of more than 35 companies in the exploration and production (E&P) and service sectors.

The current oil & gas portfolio includes Vetco International (ABB's former upstream oil and gas business); EDP, an oilfield development project manager; Salamander Energy, an E&P company focused on South East Asiaand Finnish oil spill response company Lamor Corporation. 

Previous investments include Petrofac, the international oil and gas facilities service provider, which floated in October 2005; Revus Energy, the independent Norwegian upstream company, which floated in June 2005 and Epcon Offshore, a designer and manufacturer of water treatment systems for the oil and gas industry.