GE Energy to acquire 100% of ScanWind from Morphic Technologies and Nord Trondelag Elektrisitetsverk

Wed. August 12, 2009; Posted: 02:52 PM

Aug 12, 2009 (Datamonitor Financial Deals Tracker via COMTEX) -- MPHCF | Quote | Chart | News | PowerRating -- GE Energy, a US-based supplier of equipment and services for power generation, has signed an agreement to acquire 100% of the shares in ScanWind Group AS, a Norway-based manufacturer of wind turbines, from Morphic Technologies AB and Nord Trondelag Elektrisitetsverk AS for SEK130 million ($17.83 million) on a cash and debt free basis.

Morphic is a Sweden-based developer and marketer of energy systems, while Nord Trondelag is a Norway-based energy producer. Morphic and Nord Trondelag holds 81.55% and 18.45% stake in ScanWind, respectively.

Ernst & Young Corporate Finance AB is acting as financial advisor, while Mannheimer Swartling Advokatbyra AB is acting as legal advisor to Morphic on this transaction.

The transaction is expected to be completed early September 2009.

Deal Value (US$ Million) 17.83
Deal Type                Acquisition
Sub-Category             100% Acquisition
Deal Status              Announced: 2009-08-12

Deal Participants

Target (Company)   ScanWind Group AS
Acquirer (Company) GE Energy
Vendor 1 (Company) Nord Trondelag Elektrisitetsverk AS
Vendor 2 (Company) Morphic Technologies AB

Deal Rationale

The sale is part of Morphic's strategy to focus on its core businesses and deploy the proceeds to further strengthen its position in core fuel cells business. The sale will also substantially reduce Morphic's base costs, corresponding to an annual saving of SEK58 million ($7.95 million). The acquisition will give GE Energy the ability to provide a direct drive, offshore wind turbine offering as an option to its customers and also represent the next strategic fit for its wind turbine line.

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