BayWa r.e. AG has reached an agreement with its financiers on the key aspects of a long-term financing solution, which extends credit and guarantee lines until December 2027.
Implementation of this agreement will meet the requirements outlined in a restructuring report prepared by the Boston Consulting Group. The report confirms BayWa r.e.’s ability to restructure, provided the necessary transformation measures are implemented consistently by the end of 2027. In line with this, BayWa r.e. has launched the “r.e.power” transformation program to improve both immediate and long-term performance while reinforcing its competitive position.
Additionally, BayWa r.e.’s shareholders are engaged in advanced but not yet finalized discussions regarding a potential capital increase for the company. This could lead to a change of control in favour of EIP (Energy Infrastructure Partners). Negotiations remain open-ended, with the parties aiming for an agreement by the first quarter of 2025.
Strategic goal: creation of a focused project developer in the renewable energy sector with its own IPP portfolio
The r.e.power program fundamentally envisions a clear focus on business areas with positive market forecasts, where BayWa r.e. already holds a strong competitive position. These include, for example, project development in wind, solar, and battery storage, the operation and maintenance of such facilities as an Independent Power Producer (IPP), and energy trading. The strategic goal is the creation of a focused and integrated project developer in the renewable energy sector. BayWa r.e. will continue to operate globally, concentrating on markets that exhibit lower economic risks and growth opportunities. The aim is to realize projects exceeding 2 GW per year and to expand the company’s own IPP portfolio to a total capacity of over 1 GW after its optimization starting in 2026.
BayWa r.e. will develop into a more centrally managed organization, while maintaining local business responsibility. Supporting functions such as controlling, finance and HR will be made more effective and efficient through centralized management. The measures outlined in the r.e.power program are scheduled to be completed by the end of 2027.
Opportunity for a sustainable future for BayWa r.e. requires structural adjustments to a focused business model: reduction of 350 positions planned by end of 2027
Through its transformation, BayWa r.e. can become stronger, more resilient, and future-proof, enabling it to continue making a significant contribution to the energy transition. To achieve this, BayWa r.e. will consistently implement the necessary measures of the transformation program. This includes adapting the company’s structures to the focused business size and volume across all areas and markets.
Personnel adjustments will also be made in line with the focusing and optimization of the operating business. Following the implementation of all measures in the transformation program, BayWa r.e. aims to reduce its workforce to approximately 1,500 employees by the end of 2027. As part of this restructuring, about 350 positions (FTE*) will be phased out gradually in a socially responsible manner by the end of 2027.
With regard to the business areas and business activities that are not expected to be part of the long-term core business of the new BayWa r.e., optimization options will first be examined and initiated in the course of r.e.power before final decisions are made on a possible transfer to new owners, portfolio adjustments or market exits. According to current planning, this could impact up to 2,400positions (FTE*). Currently, BayWa r.e. employs around 4,250 people.
Matthias Taft, CEO of BayWa r.e.:“The future viability of BayWa r.e. and therefore its contribution to the essential energy transition, remains our central goal—a goal we can only achieve by taking decisive action now and placing BayWa r.e. back on a stable foundation. Our strategic objective is to establish a focused and integrated project developer in renewable energy with its own IPP portfolio.”
Felix Colsman, CRO of BayWa r.e.:“The successful restructuring of BayWa r.e. requires the consistent implementation of the measures defined in the transformation, affecting all segments and markets. We have already begun implementing r.e.power and initiated a variety of immediate actions to stabilize BayWa r.e.'s financial situation and achieve initial EBITDA** improvements. Once all necessary transformation measures have been implemented, the new BayWa r.e. will achieve a market-standard EBITDA** margin with a balanced risk profile across all business segments.”
*full-time equivalent
**earnings before interest, taxes, depreciation, and amortisation
