Doughty Hanson has agreed to sell LM Wind Power, a Danish manufacturer and supplier of rotor blades for the wind industry, to GE (NYSE: GE), which will absorb the company into its renewable energy business. LM Wind Power operates 13 factories on four continents; the $1.65 billion sale price represents 8.3x EBITDA, and the deal is expected to close during 1H 2017.
For Doughty Hanson, an investor in the upper end of the European middle market, the transaction will mark an exit after an elongated holding period—the firm first backed LM Wind Power back in 2001. The sale is the latest step in Doughty Hanson’s ongoing transformation after the surprising death of co-founder Nigel Doughty in 2012.
Shortly after Doughty’s passing, the firm, which was founded in 1985, ceased its venture and real estate operations to focus instead on private equity. Last April, though, the firm canceled its PE fundraising efforts and announced plans to focus on realizing its portfolio. Last August, Doughty Hanson revealed plans to close four of its seven offices in Europe and that five senior partners were leaving the firm.