GE Completes Acquisition of LM Wind Power
April 20 2017 - 6:42AM
Business Wire
- Insourcing of blade manufacturing to
strengthen GE’s supply chain, increase competitiveness and deliver
greater value to customers
- LM Wind Power to continue supplying
wind blades to all industry players
- Deal to be accretive to GE earnings in
2018
GE (NYSE:GE) the world’s leading Digital Industrial company,
announced today that it has completed the acquisition of LM Wind
Power, a Denmark-based technology developer and manufacturer of
rotor blades to the wind industry. The completion of the
transaction follows regulatory approval in the European Union, the
United States, China, and Brazil.
GE reached an agreement with the London-based private equity
firm Doughty Hanson in October 2016 to purchase the company for
€1.5 billion ($1.65 billion). The transaction in-sources wind
turbine blade design and manufacturing for GE’s Renewable Energy
business, improving its ability to increase energy output and
create value for onshore and offshore wind customers. The deal will
be accretive to GE earnings in 2018.
Jérôme Pécresse, President and CEO of GE Renewable Energy, said,
“The completion of the LM Wind Power acquisition provides us with
the operational efficiencies necessary to support the growth of our
wind turbine business, which is the fastest growing segment of
power generation. With LM’s technology and blade engineering, we
are now able to improve the overall performance of our wind
turbines, lowering the cost of electricity and increasing the value
for our customers. Together, we are set to capitalize on the
expansion of renewable energy and be a growth engine for GE.”
Marc de Jong, CEO of LM Wind Power, said, “LM Wind Power has had
a long-standing partnership with GE that has yielded many
innovations and commercial successes, including the installation of
the first-ever offshore wind farm in the United States. We see many
digital and advanced manufacturing technology capabilities that
will help accelerate our technology development and increase our
customer reach.”
LM Wind Power will be run as an individual operating unit within
GE Renewable Energy, providing blades for both GE’s onshore and
offshore wind business units. LM Wind Power will also continue to
supply blades to the rest of the wind industry, having established
protocols and safeguards to protect customers’ confidential
data.
With this deal, GE continues to deepen its capabilities and
ambitions in renewable energy. In the past year, GE has delivered
the first offshore wind farm in the US, won its first offshore
project in China, launched its onshore digital wind farm and
digital hydro plant, and developed hybrid projects in wind-solar
and hydro-wind.
GE’s goal is to deliver renewable energy projects locally that
maximize electricity output while reducing the cost of electricity,
bringing affordable, sustainable energy to the world and more value
for its customers.
For more information on the deal
visit www.gerenewableenergy.com
About GE Renewable Energy:
GE Renewable Energy is a $10 billion start-up that brings
together one of the broadest product and service portfolios of the
renewable energy industry. Combining onshore and offshore wind,
hydro and innovative technologies such as concentrated solar power,
GE Renewable Energy has installed more than 400+ gigawatts capacity
globally to make the world work better and cleaner. With more than
12,000 employees present in more than 55 countries, GE Renewable
Energy is backed by the resources of the world’s first digital
industrial company. Our goal is to demonstrate to the rest of the
world that nobody should ever have to choose between affordable,
reliable, and sustainable energy.
Follow us @GERenewables
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version on businesswire.com: http://www.businesswire.com/news/home/20170420005632/en/
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