Bloomberg News

Greentech Energy May Acquire Companies in Distress, Chief Says

February 22, 2012

Feb. 22 (Bloomberg) -- Greentech Energy Systems A/S, a Danish renewable energy developer, is considering purchasing companies in distress due to the European debt crisis and plans to make an announcement in the first half of the year.

“I always think that even crises are very strong opportunities if you know how to exploit them,” Sigieri Diaz della Vittoria Pallavicini, chief executive officer at the Copenhagen-based company, said today in a phone interview.

“We are looking more to international companies that have portfolios spread in different regions but Poland we like particularly,” he said. Greentech will make a “move” in the first half as it seeks to install one gigawatt of renewable energy capacity by 2014 from about 300 megawatts now. “We have very aggressive plans,” the executive said.

The acquisition remarks came as Greentech reported an annual profit of 11.3 million euros ($15 million) compared with a 2.9 million-euro loss in 2010. Earnings before interest, taxes, depreciation and amortization before impairment rose to 19 million euros from 2.3 million euros a year earlier.

Net electricity production in 2011 more than doubled. The company is also reducing costs by about 2 million euros by cutting staff and improving efficiencies, Chief Financial Officer Mark Fromholt said in the same interview.

“What we are looking for are companies that due to the current crisis might be under pressure, maybe not called distressed but close-to-distress,” Fromholt said. “Therefore we’re able to buy companies at a price that is better for us.”

Central America, India

The company will look at businesses in markets including Europe, Central America and India as well as increasing its Spanish portfolio, the CEO said.

Greentech is planning to spend about 100 million euros this year to develop projects. That wouldn’t include potential mergers, which would involve offering stockholders of a company securities in Greentech in exchange for shares, Fromholt said.

Greentech has projects including wind parks in Denmark, Germany and Poland as well as Italy and Spain where it also has solar plants. The company is no longer studying an acquisition of Scan Energy A/S, a competitor that restructured last year, the CEO said.

Greentech merged with GWM Renewable Energy II SpA, a unit of the Geneva-based financial services company GWM Group, in August to form a “New Greentech.” The company worked since then to revive its stock price relating to approvals of a wind park and an association with a Sicilian wind-farm stake.

Today’s 2010 figures relate to the activities of GWM.

The annual report for 2011 will be published on March 22.

--Editors: Randall Hackley, Stephen Cunningham

To contact the reporter responsible for this story: Sally Bakewell in London at

To contact the editor responsible for this story: Reed Landberg at

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