Valmont Industries said it will sell its offshore wind business to Euro Steel, a Denmark-based supplier of steel products to the European wind market.
The sale comes as Nebraska-based Valmont focuses on its solar energy business, which it said offers the highest potential for “global growth,m scalability and value creation.”
Valmont acquired the offshore wind business, known as Valmont SM, in 2014. The unit is expected to generate around $100 million of revenue in fiscal 2022. The company said it plans to use net cash proceeds from the sale to help repay short-term borrowings.
The sale is expected to result in a loss per share of ($1.20) to ($1.45), nearly all which stems from what the company said is a non-cash accumulated currency translation loss. Valmont said it expects the deal to close in the fourth quarter.
Founded in 1988, Euro Steel Denmark supplies steel plates, beams, and other products to turbine manufacturers in European wind markets.
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Author: Renewable Energy World