High-tech engineering group United Technologies Corporation (UTC) has offered to fully acquire Clipper Windpower in a $111 million deal designed to help the wind energy company overcome the challenging wind turbine market conditions.
UTC already owns 49.9 per cent of Clipper and has offered to buy the company’s remaining shares at ¢103/share. The deal would not only create the “long term financial stability” that Clipper needs for continued growth, but would add to UTC’s portfolio of technologies, say the two companies.
“In the context of the challenging environment that Clipper has faced in recent years, we believe that the transaction represents good value for our shareholders and provides substantial benefits for our customers and employees,” said Mauricio Quintana, president and chief executive officer of Clipper.
Clipper manufactures wind turbines and develops wind power projects, primarily in the US market. It sold only 43 wind turbines in the first half of 2010, compared with 127 in the first half of 2009 and said in September that it has been affected by the effects of the global economic and credit crises.
Another issue facing the firm this year was its inability to provide customers with turbine warranty coverage in line with that provided by top tier turbine manufacturers, an issue that has now been rectified.
UTC bought into Clipper in late 2009, paying £166 million for a 49.9 stake. Its latest offer values Clipper at approximately £139.5 million.