TPI Composites Inc has agreed to divest its automotive business to Clear Creek Investments LLC (CCI), a local investment firm, as part of its strategy to concentrate on its primary market in the wind industry.
The automotive unit being sold supplies composite structures and components for various applications including passenger vehicles, buses, trucks, and delivery vehicles. Financial terms of the transaction were not disclosed. According to TPI, the divestiture is expected to enhance monthly cash flow by approximately USD 1.7 million (EUR 1.58 million) through the remainder of 2024, as stated in a press release on Monday.
Upon completion of the transaction, slated for June 30, CCI plans to rebrand the acquired business as Senvias.
“We are proud of the achievements of our automotive team in expanding this business and creating innovative solutions for the transportation market. We are confident that CCI will provide the necessary capital and focus to support the growth of the Automotive business and serve its customers in the electric vehicle market,” said Bill Siwek, CEO of TPI Composites.
Established in 1968 and headquartered in Scottsdale, Arizona, TPI Composites has been a prominent supplier of composite wind blades since 2001. The company's impact on the wind sector was underscored by a recent Wood Mackenzie report, which noted TPI's significant share, accounting for approximately 33% of onshore wind blades globally (excluding China) in 2023, as cited on the company's website.
