United Technologies Corp. (NYSE:UTX) has agreed to acquire a 49.5% stake in Clipper Windpower Plc (CWP.L), a California-based wind turbine manufacturer that trades on the AIM London Stock Exchange.
UTC’s total investment will be £166 million (approximately $270 million) to purchase a combination of 84.3 million newly issued shares and 21.8 million shares from existing shareowners. The investment has been approved by the boards of directors of both UTC and Clipper Windpower, and closing is pending Clipper Windpower shareholder and regulatory approval.
Clipper Windpower (www.clipperwind.com) is engaged in wind energy technology, turbine manufacturing, and wind project development. Headquartered in Carpinteria, Calif., the company has a turbine manufacturing plant in Cedar Rapids, Iowa, and research and development facilities in Carpinteria, Calif., and Blyth Harbor, U.K. The company had 2008 revenues of $737 million.
The company’s share’s were hit especially hard by the economic downturn, falling from over $700 a share in January of 2008 to around $70 a share in January of 2009, before recovering to around $175 a share before this latest release.
The agreement allows UTC to expand its power generation portfolio. The $50 billion-plus segment for wind turbines and installation has grown at an annual rate of 25% during this decade.
UTC said it expects to work closely with Clipper Windpower to improve the company’s core technology, manufacturing, product quality, and supply management capabilities. UTC business units already are involved in blade technology, turbines and gearbox design–among other high-tech products and support services to the building systems and aerospace industries.
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