Gamesa Sells Its Solar Unit To First Reserve

 Vitoria, February 28, 2008. Gamesa Corporación Tecnológica, S.A. and the private equity firm First Reserve Corporation have agreed to the sale of Gamesa Solar for a total consideration of €261 million. Net debt was approximately €53 million as of December 2007. The transaction is subject to certain condition precedents.

 

Gamesa Solar is the leading solar energy company in Spain focusing on the development, construction and sale of solar photovoltaic plants as well as providing turn-key project management for third parties. With over 100 employees, Gamesa Solar has achieved revenues over €200 million and EBITDA of c. €25 million as of December 2007.

 

Guillermo Ulacia, Gamesa Chairman and CEO said: “The sale of Gamesa Solar monetises the value created in a business that was created in 2005. Additionally, we have completed our exit from non-core activities after the divestitures of the aeronautics and services divisions in 2006. After this transaction, Gamesa Corporación Tecnológica concentrates fully in wind energy, a highly technological activity where Gamesa is an international leader”.

 

Citigroup acted as financial advisor to Gamesa.

 

Francesco Giuliani, Director of First Reserve Corporation, declared: "We are very excited about this investment opportunity. Gamesa Solar has a leading position in the Spanish photovoltaic market that is among the most sophisticated in the world. We plan to support the solar team in replicating this presence internationally. This is a platform investment into one of the fastest growing segments of the renewable space."

 

First Reserve’s most recent private equity fund closed in 2006 at approximately €5.4 billion (US$8 billion) and has dedicated approximately 10% or (€540 million) of the fund to alternative and renewable investment opportunities worldwide.

 

About First Reserve Corporation

 

First Reserve is the world's leading private equity firm in the energy industry. The firm is currently investing its most recent fund which closed in 2006 at approximately €5.4 billion (US $8 billion). Throughout its 25-year history, First Reserve has developed a strong franchise of investing exclusively in the energy industry, utilizing its broad base of specialized industry knowledge. First Reserve believes that strategic diversification across a wide range of energy industry sectors has been a major contributor to the long-term, superior investment record achieved by the First Reserve Funds across economic cycles.

 

About Gamesa

 

Gamesa is a company specializing in sustainable energy technologies, mainly wind power. Gamesa is the market leader in Spain and is positioned among the most important wind turbine manufacturers in the world with a market share of 16%* in 2006.

 

Gamesa has installed over 13,000 MW of its main product lines in 20 countries spread out over four continents. The annual equivalent of this production, allows for savings over 2.78 million petroleum equivalent tonnes / year and a reduction in CO₂ emissions of over 19.41 tonnes / year.

 

With a portfolio of more than 21,000 MW of wind power being promoted in Europe, America and Asia and branches in 13 countries, Gamesa is well positioned as one of the world's most important companies in the promotion and development of wind farms.

 

*World Market Update 2006 (BTM Consult)

 

For media inquiries related to First Reserve, please contact: Caroline Harris of CJP Communications at 212-279-3115; ext. 222 or via email at charris@cjpcom.com or John Anderson of Cubitt Consulting +44 020 7367 5100 or john.anderson@cubitt.com

 

For media inquiries related to Gamesa, please contact: Ricardo Elorza at +34 94 431 76 00 or via email at relorza@gamesacorp.com