The BayWa Group plans to sell the international solar trading business "Solar Trade", which is part of BayWa r.e. AG. The decision is based on a strategic realignment of BayWa r.e. AG, which will focus on the international project business and further expansion as an Independent Power Producer (IPP) in the future, the company announced.
The aim, it said, is to use the proceeds from the sale to finance the tripling of the size of the current project business by 2026 and to expand the IPP portfolio to 3 gigawatts. The sale would also serve to re-allocate the capital employed.
More than 1,400 employees worldwide
In addition, the sale is intended to give Solar Trade the opportunity to continue its success story through a potential buyer. BayWa r.e.'s solar trade business has a global network of over 20 distribution companies and more than 1,400 employees worldwide. Enormous growth opportunities due to the global energy transition are seen in particular in the European core markets as well as through expansion in the APAC and Americas regions. Solar Trade has the potential to increase annual sales of solar modules and inverters to more than 10 gigawatts, it said.
"With a potent buyer, we have the opportunity to continue the group's success story that began in 2008. Today, we are a major pacesetter in the energy transition. We generate more than half of our consolidated earnings from renewable energies," said Klaus Josef Lutz, Chairman of the Board of Management of BayWa AG and Chairman of the Supervisory Board of BayWa r.e. AG.
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"BayWa r.e. has experienced incredible growth to drive the global energy transition. We owe this success to the commitment and passion of our employees," said Matthias Taft, CEO of BayWa r.e. AG. "Now is the right time to set this forward-looking strategic course so that BayWa r.e. and Solar Trade can pursue this ambition in an even more focused way."
High market dynamics
"The future has an enormous demand for more renewable energies, which results in a huge potential for the players in this market," says Roland Dörig, co-founder and Managing Partner of Energy Infrastructure Partners (EIP) AG. "The high market dynamics of recent years combined with Solar Trade's success and market-leading position should prove extremely attractive to a potential buyer."
The combined effects of the global climate and energy crises are leading to an even greater acceleration in the transition to renewable energy. Projections indicate that as much renewable electricity will be added in the next five years as has been added in the entire last twenty years. This acceleration is leading to highly dynamic market conditions. (hcn)
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