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Sauer Energy plans takeover of City Windmills
Posted on Friday, 09 December 2011 12:26
US-based Sauer Energy, a manufacturer of wind turbine systems for homes and small buildings, plans to buy City Windmills as it looks to move “aggressively” into government contracting.
The two firms have signed a non-binding letter of intent and will discuss a full purchase of City Windmills at meetings in Washington DC in the coming weeks. Sauer is in the process of carrying out due diligence.
The would-be buyer currently sells home and business-scale vertical axis wind turbines to private customers.
Its target has a contract to provide wind power to a government agency. It is not yet clear which agency this is, as a non-disclosure agreement is in place and will not be lifted unless the two parties close a deal.
Sauer’s president Dieter Sauer said: “On top of the government contract, the acquisition comes with Roland Bopp who will head up the new government division of Sauer Energy.
“Mr Bopp has worked in several executive positions with multi-billion dollar companies. So his addition to our team would be a tremendous win for everyone.”
The former president of Deutsche Telekom Americas is chairman and chief executive of City Windmills. He has also previously worked as executive vice president of Hochtief’s New York subsidiary Turner Construction and executive vice president of Mannesmann.
City Windmills Inc is the US subsidiary of a British company – City Windmills Ltd – founded last year by the current chief financial officer Sean Kelly.
It was established specifically to manage the group’s relationship with the US government and in anticipation of sales activity derived from president Barack Obama's renewable energy programme.
Sauer said: "The reason we are pursuing this acquisition [. . .] is to open up new channels of sales that will enhance our bottom line.”
City Windmills targets revenue from both clients using its wind turbines and advertisers buying space on them.
It estimates the potential small wind market for corporate buildings in the US to be worth around USD 180.00 million, based on a need for 14.50 million small windmills and a pricing of USD 12,000 to USD 15,000 apiece.
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