General Electric (NYSE:GE) says it intends to purchase Denmark-based LM Wind Power for $1.65B, in a deal that would in-source wind turbine blade design and manufacturing for its renewable energy business.
The acquisition "will help sustain growth in the wind power industry," says Jerome Pecresse, head of GE Renewable Energy. "We'll be more local, have more flexibility and knowledge in turbine design and supply, and more ability to innovate and reduce product costs, while improving turbine performance."
GE values the deal at 8.3x pro forma EBITDA, and expects the deal to be accretive to earnings in 2018.
Subscribe for full text news in your inbox