Exclusive - Centerbridge prepares wind turbine group Senvion for IPO: sources

By Freya Berry and Arno Schuetze

LONDON/FRANKFURT (Reuters) - Buyout firm Centerbridge is exploring a listing of German wind turbine company Senvion less than a year after acquiring the company for 1 billion euros (£702.5 million), two sources familiar with the matter said on Monday.

The private equity firm is working with JP Morgan (N:JPM) and Deutsche Bank (DE:DBKGn) on the potential exit, which may value Senvion, formerly known as Repower, at roughly 1.5 billion euros, the people said.

While an initial public offering is seen as the most likely option, Centerbridge may decide on an outright sale or to keep the asset, the sources said, adding a note of caution because deliberations are at a very early stage.

Centerbridge, JP Morgan and Deutsche Bank declined to comment.

Consolidation in the wind turbine sector, which has suffered from overcapacity, is gaining pace as companies emerge from years of cost-cutting and earnings improve.

Last month, Germany's Nordex (DE:NDXG) bought Spanish firm Acciona's (MC:ANA) wind power business for 785 million euros to create a global player in the wind energy market.

New York-based Centerbridge purchased Senvion from loss-making Indian parent Suzlon Energy (NS:SUZL) only in January.

Private equity firms typically aim to hold companies for four to six years, although that time has been coming down as funds take advantage of a strong sellers' market to make a quick return on assets.

Buyout house Bain, for example, listed British brick manufacturer Ibstock (L:IBST) in October, after buying the company in December 2014 from Irish construction group CRH (I:CRH).

"It's like Ibstock, it's becoming a new world for sponsors where they can simply take advantage of the markets," one of the sources said of the speed of Centerbridge's planned exit.

Another source familiar with the matter said that Centerbridge had bought Senvion on the cheap and a quick disposal may help it maximise its internal rate of return, a measure private equity groups use to identify investment success over time.

In July Senvion announced adjusted core earnings (EBITDA) of 155 million euros, up 6.2 percent on the previous fiscal year, and revenues of 1.9 billion euros. An industry banker noted that the business had won several projects since the acquisition.

Rivals like Nordex, Vestas (CO:VWS), Goldwind or Ming Yang (N:MY) trade at an average of 9.4 times their expected core earnings and if Senvion would fetch a similar valuation it could sell for roughly 1.5 billion euros.

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