October 11, 2016 / 11:56 AM / 10 months ago

GE to buy wind turbine rotor blades maker for $1.65 billion

The logo of Down Jones Industrial Average stock market index listed company General Electric is shown at their subsidiary company GE Aviation in Santa Ana, California April 13, 2016.Mike Blake

(Reuters) - General Electric Co (GE.N) said it would buy LM Wind Power, a maker of rotor blades used in wind turbines, from private equity firm Doughty Hanson for $1.65 billion, as it looks to capture a bigger share of the fast-growing renewable energy market.

GE separated its renewable energy business from its power unit last year, following the $13.6 billion acquisition of Alstom SA's (ALSO.PA) power business.

Denmark-based LM Wind Power is the largest supplier of rotor blades to GE, and the deal will help the U.S. industrial conglomerate in-source turbine blade design and manufacturing, the company said on Tuesday.

GE said it intends to operate LM Wind Power as a standalone unit within its renewable energy operations.

LM Wind Power had revenue of 750 million euros ($840 million) in 2015. The company operates 13 factories in eight countries including Denmark, Canada, the United States, India, China and Brazil.

GE's renewable energy business generated $6.27 billion in revenue in 2015, accounting for about 6 percent of GE's total industrial segment revenue.

The company said it expected the deal to close in the first half of 2017 and to add to earnings in 2018. [nBw5j3ZXma

GE also said on Tuesday that the integration of Alstom Power was on track.

The company's shares were little changed in early morning trading.

Up to Monday's close of $28.86, GE's shares had fallen 7.35 percent this year, compared with a 5.86 percent increase in the S&P 500 index .SPX.

Reporting by Ankit Ajmera in Bengaluru; Editing by Sriraj Kalluvila

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