United Technologies to acquire Clipper Windpower

Wind turbine maker Clipper Windpower has agreed to an acquisition by US conglomerate United Technologies Corporation (UTC). Under the deal, UTC would pay 65p a share to acquire the 50.1 per cent stake in the alternative investment market (AIM)-listed Clipper, that it does not own already and assist with cash flow ahead of the transaction.

Clipper Windpower is engaged in wind energy technology, turbine manufacturing, and wind project development and has offices in the US, Mexico, Denmark and the UK. The company designs and develops advanced wind turbines and undertakes wind power generating projects in the Americas and Europe. The public company is listed on the London Stock Exchange's alternative investment market (AIM).

Last year, UTC, which offers hi-tech products and services to the building systems and aerospace industries, paid £166 million for a 49.5 per cent stake in Clipper.

The deal will net the founding Dehlsen family just under £6 million.

The deal offers a hefty 48 per cent premium to the company's share price on 17 September.

According to Clipper, the deal has unanimous support from its independent directors.

According to analysts it was disappointing to see Clipper depart from public markets at a time when it was within sight of emerging as a profitable business, but the current dip in wind farm financing and demand for new capacity had overwhelmed Clipper's resources as an independent entity.

Among the companies that the £43.4 billion Connecticut-based UTC owns are lift-maker, Otis, engine maker Pratt and Whitney and Sikorsky.