GE acquires €1.5bn LM Wind

GE has agreed to buy Danish blade manufacturer LM Wind Power for €1.5bn in deal expected to close in the first half of next year.

LM Group Holding said the deal was agreed following European private equity firm Doughty Hanson’s decision to sell its stakes in LM Wind Power.

The transaction, which is subject to regulatory approvals, is valued at 8.3 times 2016 forecast EBITDA.

The blade manufacturer has 13 factories in eight countries across four continents.

GE said the deal in-sources wind turbine blade design and manufacturing for its renewable energy business, “improving its ability to increase energy output and create value for onshore and offshore customers”.

Following the closing of the deal, GE said it will operate LM Wind Power as a standalone unit led by its existing management team headquartered in Denmark.

GE added that it will also source blades from other suppliers.

LM Wind Power chief executive Marc de Jong said: “The offer from GE makes clear commercial sense for the growth of LM Wind Power.

“It provides us with the necessary stability, visibility and strength to continue to realize the ambitious growth plans of the business and fully utilize our advanced design and technology, improve our manufacturing capabilities and reliability, expand our global footprint and reduce the Levelized Cost of Energy.”

Image: LM Wind