GE plans $1.65 billion acquisition of LM Wind Power

• 7 years ago (2016-10-12)
• David Flin

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GE has announced its intention to purchase LM Wind Power, a Denmark-based manufacturer and supplier of rotor blades to the wind power industry, for $1.65 billion. The deal will in-source wind turbine blade design and manufacturing for GE’s Renewable Energy business, improving its ability to increased energy output and create value for onshore and offshore customers. LM Wind Power has been owned by Doughty Hanson, a London-based private equity firm, since 2001.

LM Wind Power is a leading supplier of blades for the wind turbine industry, offering blade development, manufacturing, service, and logistics. GE does not currently produce blades, and LM Wind Power is its largest blade supplier. Since 1978, LM Wind Power has produced over 185,000 blades, corresponding to around 77 GW of installed wind power capacity.

The acquisition is valued at 8.3 times pro forma earnings before interest, taxes, depreciation, and amortisation (EBITDA). The transaction is subject to regulatory and governmental approvals, and GE expects to close the transaction in the first half of 2017.

GE will operate LM Wind Power as a standalone unit within GE Renewable Energy. GE will also retain the ability to source blades from other suppliers. LM Wind Power will continue to be led by its existing management team and be headquartered in Denmark, where it also maintains a global technology centre.