China Ming Yang Wind Power Group has signed an agreement to acquire a 99% stake in China Smart Electric Group, which through of its subsidiaries, supplies components for wind turbines.
Ming Yang will pay US$ 149 million for the deal to acquire RENergy, the subsidiary in which China Smart owns all of the equity interest. The deal is expected to close this week.
RENergy is engaged in the manufacture, sale, research and development of electrical system equipment. It is China’s largest supplier of core components for wind turbine generators, including components such as main control systems, pitch control systems and converters.
RENergy is the only company in China that provides total electrical control solutions by offering and integrating the three core components of the electrical control system. It has a team of over 550 staff based at its headquarters in Tianjin and in two nearby production plants.
RENergy is one of Ming Yang’s major suppliers, and has been considered and treated as a related party of Ming Yang. In 2014, RENergy supplied US$128 million worth of components to Ming Yang, representing 87.1% of Ming Yang’s aggregate amount of related party transactions involving purchases of raw materials.
The acquisition is expected to create significant synergies between Ming Yang and RENergy. Upon completion of the acquisition, Ming Yang, one of the world’s largest wind turbine manufacturers, will integrate RENergy’s patented electrical control system technologies into Ming Yang’s existing product offerings, allowing Ming Yang to evolve further to become a provider of comprehensive wind energy solutions and to address a wider range of its customers’ requirements.
