Reuters logo
UPDATE 2-GE to buy wind turbine rotor blades maker for $1.65 bln
October 11, 2016 / 12:22 PM / a year ago

UPDATE 2-GE to buy wind turbine rotor blades maker for $1.65 bln

* Deal expected to close in first half of 2017

* LM Wind Power to operate within GE’s renewable energy unit

* LM Wind Power had 2015 revenue of 750 mln euros (Adds details, background)

Oct 11 (Reuters) - General Electric Co said it would buy LM Wind Power, a maker of rotor blades used in wind turbines, from private equity firm Doughty Hanson for $1.65 billion, as it looks to capture a bigger share of the fast-growing renewable energy market.

GE separated its renewable energy business from its power unit last year, following the $13.6 billion acquisition of Alstom SA’s power business.

Denmark-based LM Wind Power is the largest supplier of rotor blades to GE, and the deal will help the U.S. industrial conglomerate in-source turbine blade design and manufacturing, the company said on Tuesday.

GE said it intends to operate LM Wind Power as a standalone unit within its renewable energy operations.

LM Wind Power had revenue of 750 million euros ($840 million) in 2015. The company operates 13 factories in eight countries including Denmark, Canada, the United States, India, China and Brazil.

GE’s renewable energy business generated $6.27 billion in revenue in 2015, accounting for about 6 percent of GE’s total industrial segment revenue.

The company said it expected the deal to close in the first half of 2017 and to add to earnings in 2018. [nBw5j3ZXma

GE also said on Tuesday that the integration of Alstom Power was on track.

The company’s shares were little changed in early morning trading.

Up to Monday’s close of $28.86, GE’s shares had fallen 7.35 percent this year, compared with a 5.86 percent increase in the S&P 500 index. ($1 = 0.893 euros) (Reporting by Ankit Ajmera in Bengaluru; Editing by Sriraj Kalluvila)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below