Composite Tech Sells Turbine Business to DSME
Composite Technology Corporation (CTC) (OTCBB: CPTC) announced that it has reached agreement to sell substantially all of the operating assets and operating liabilities of DeWind Inc., including its subsidiaries and certain assets of DeWind Ltd. 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. The transactions are subject to customary closing conditions and are expected to close within the next 30 days. As part of the transaction, most of the DeWind employees will move to DSME.
"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 DSME.
Benton H Wilcoxon, Chairman and CEO of CTC, stated, "I am pleased that a world class company has recognized the excellent design with leading-edge technology of the DeWind turbine. Furthermore with DSME's strength and manufacturing expertise, I believe that the DeWind team and its products will be able to accelerate growth plans. 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.
The execution of the agreements will be described in a Form 8-K to be filed with the Securities and Exchange Commission (SEC) within the next four business days.