Kaye Scholer Represents WKN in Wind Power Deal with BayWa
NEW YORK – Kaye Scholer LLP represented WKN AG in its sale of 70 percent of WKN USA, LLC from its subsidiary Windkraft Nord USA, Inc., to BayWa r.e USA LLC, a wholly-owned US subsidiary of BayWa AG.
The Kaye Scholer team included Partner Jeff Chester and associates Elizabeth Sluder and Derrick Zandpour with tax support from Partner Willys H. Schneider and associate Gregg Benson.
About Kaye Scholer
Kaye Scholer refers to the international law firm Kaye Scholer LLP and its affiliates, with offices in Chicago, Frankfurt, London, Los Angeles, New York, Palo Alto, Shanghai, Washington, DC, and West Palm Beach. Founded in New York City in 1917, Kaye Scholer represents public and private companies, governmental entities, financial institutions, and other organizations in matters around the world.
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The following press release was issued earlier today.
BAYWA CONTINUES TO EXPAND ITS INTERNATIONAL OPERATIONS BY ENTERING THE US WIND POWER BUSINESS
Munich, 29 August 2011 - BayWa AG is expanding its international operations by stepping up its activities in the field of renewable energies: The trading group has entered the wind power project business in the USA through its wholly-owned US subsidiary BayWa r.e USA LLC. BayWa r.e has acquired 70 percent of WKN USA, LLC from Windkraft Nord USA, Inc., a subsidiary of WKN AG. WKN AG is an international wind power project management company based in Germany in which, among other companies, Siemens Project Ventures GmbH (SPV), part of Siemens Financial Services (SFS), also holds shares. A stake of 30 percent in the shares in WKN USA will remain with WKN AG and the management.
Due to the assumption of net liabilities of approximately USD 15 million, the acquisition of the company shares does not result in the payout of a purchase price.
WKN USA has established itself as a well-known project developer of wind farms and, along with other projects, has built the USA’s highest wind park to date with a hub height of 105 meters for an Italian energy provider.
BayWa has secured great potential for realising onshore wind projects in a number of US federal states through this new investment in the USA. The project pipeline comprises around 110 megawatts (MW) in ready-to-build projects plus a pipeline of 1,000 MW.
"Following our successful entry into the photovoltaic wholesale business at the end of last year, this acquisition will now enable us to expand our renewable energies activities in the USA to include wind power. We made a promise to our investors to grow our international operations and have now established ourselves in both the UK and the USA in the wind power and solar businesses”, explained Klaus Josef Lutz, Chief Executive Officer of BayWa AG.
"This acquisition underscores our strategy of expansion in a profitable future-oriented market, as there are huge growth opportunities for wind and solar in the USA. We also see great potential in the partnership with WKN AG", added Roland Schuler, Board member responsible for BayWa’s Energy Segment.
"The American renewable energies market is only at the beginning of leveraging its potential. In BayWa we have found a strong partner for the future when we will be realising these growth opportunities", stated Florian Zerhusen, Chief Executive Officer of WKN USA.
BayWa r.e GmbH is a wholly-owned subsidiary of BayWa AG. The Group has concentrated all its activities in the field of renewable energies under BayWa r.e and is positioning itself in this growth market. Through the subsidiaries of BayWa r.e, which operate internationally in the areas of biogas and photovoltaic plants and wind farms, BayWa has established itself as a project developer and trader in the renewable energies sector.
WKN AG develops, builds and sells turnkey wind power projects in Europe, North America and South Africa. As the first German wind park developer, WKN AG has successfully positioned itself in the high-growth US-market through its subsidiary Windkraft Nord USA, Inc. (www.windkraftnord.com). Over the last 20 years, WKN AG has developed and realized more than 80 wind power projects with an installed capacity of more than 1,000 MW. (www.wkn-ag.de).
Siemens Project Ventures GmbH (SPV) is a company of Financial Services (SFS), the finance division of Siemens. Together with renowned partners, SPV has with equity capital contributions been involved worldwide in the development of infrastructure projects, particularly in the energy, transport and healthcare sectors. SPV has already participated in the development of 14 international power plant projects with an overall capacity of more than 8.000 MW as well as in three telecommunication projects, two medical centers and an airport, with a cumulative project volume of 10 billion USD.
The Siemens cross sector Financial Services (SFS) is an international provider of financial solutions in the business-to-business area. With about 2,000 employees and an international network of financial companies coordinated by Siemens Financial Services GmbH, Munich, SFS supports Siemens as well as non-affiliated companies, focusing on the three sectors of energy, industry and healthcare. SFS finances infrastructure, equipment and working capital and act as a competent manager of financial risks within Siemens. For more information see: www.siemens.com/finance.
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