California-based Composite Technology Corporation (CTC) (OTCBB: CPTC)
has reached an agreement to sell substantially all of the operating
assets and liabilities of DeWind Inc., including its subsidiaries, to
Daewoo Shipbuilding & Marine Engineering Co., Ltd. (DSME) of Korea.
Under the terms of the asset purchase agreements, the sale price
is approximately $46,500,000 for substantially all of the operating
assets and operating liabilities of DeWind Inc., and approximately
$3,000,000 for certain assets of DeWind Ltd., subject to certain
possible post-closing adjustments.
DeWind designs, produces, and sells the DeWind series of wind
energy turbines, including a new 2-megawatt (MW) model and a 1.2-MW model. The D8.2 turbine uses a WinDrive® hydrodynamic
torque converter, by Voith AG, in combination with a synchronous high
voltage generator that is synchronized directly to the grid without the
use of power conversion electronics. DeWind D8.2 turbines are assembled
at TECO Westinghouse Motor Co., in Texas.
As part of the transaction, most of the DeWind employees will move to DSME, according to a release.
"This transaction will help DSME enter the global wind energy market
and to establish a strong presence in that market. We will leverage
DSME's world class engineering and manufacturing capabilities and
DeWind's technology and experience to become one of the world leaders
in the wind energy sector," said Sang Tae Nam, President and the CEO of
Benton H Wilcoxon, Chairman and CEO of CTC, stated, "This
transaction will allow CTC to focus its resources on its core-business
of innovative high performance electrical transmission products."
RBS Securities, an affiliate of The Royal Bank of Scotland Plc,
acted as exclusive financial advisor to DeWind. Milbank, Tweed, Hadley
& McCloy LLP acted as legal counsel to CTC and DeWind. Macquarie
Securities Korea Limited acted as financial advisors to DSME. Reed
Smith LLP acted as U.S. legal counsel to DSME, and Shin & Kim acted
as Korean legal counsel to DSME.
Daewoo Shipbuilding & Marine Engineering Co., Ltd. (DSME) is
the world's second largest shipbuilder. DSME product portfolio includes
commercial ships such as LNG carriers, oil tankers, containerships,
Liquified Petroleum Gas carriers, pure car carriers, offshore
structures such as FPSO vessels, drilling rigs, drillships and fixed
platforms; and naval vessels including submarines, destroyers, rescue
ships and patrol boats.
DSME was spun off from the Daewoo conglomerate in 2000. The
government-run Korea Development Bank and KAMCO currently own 50% in
Composite Technology Corporation, based in Irvine, California,
USA, develops, manufactures and sells electrical transmission and
renewable energy generation products through its subsidiaries.
Another South Korean manufacturing firm, STX Heavy Industries, entered the wind turbine industry last month with the acquisition of Netherlands' wind turbine manufacture Harakosan Europe B.V.