GE reached an agreement with UK-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. The deal will be accretive to GE earnings in 2018.
“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,” states Jérôme Pécresse, President and CEO of GE Renewable Energy. “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 capitalise on the expansion of renewable energy and be a growth engine for GE.”
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. It will also continue to supply blades to the rest of the wind industry, having established protocols and safeguards to protect customers’ confidential data.
“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,” says Marc de Jong, CEO of LM Wind Power. “We see many digital and advanced manufacturing technology capabilities that will help accelerate our technology development and increase our customer reach.”
With this deal, GE continues to deepen its capabilities 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.