(Reuters) - General Electric Co (GE.N) said it would buy LM Wind Power, a maker of rotor blades used in wind turbines, from private equity firm Doughty Hanson for $1.65 billion, as it looks to capture a bigger share of the fast-growing renewable energy market.
GE separated its renewable energy business from its power unit last year, following the $13.6 billion acquisition of Alstom SA's (ALSO.PA) power business.
Denmark-based LM Wind Power is the largest supplier of rotor blades to GE, and the deal will help the U.S. industrial conglomerate in-source turbine blade design and manufacturing, the company said on Tuesday.
GE said it intends to operate LM Wind Power as a standalone unit within its renewable energy operations.
LM Wind Power had revenue of 750 million euros ($840 million) in 2015. The company operates 13 factories in eight countries including Denmark, Canada, the United States, India, China and Brazil.
GE's renewable energy business generated $6.27 billion in revenue in 2015, accounting for about 6 percent of GE's total industrial segment revenue.
The company said it expected the deal to close in the first half of 2017 and to add to earnings in 2018. [nBw5j3ZXma
GE also said on Tuesday that the integration of Alstom Power was on track.
The company's shares were little changed in early morning trading.
Up to Monday's close of $28.86, GE's shares had fallen 7.35 percent this year, compared with a 5.86 percent increase in the S&P 500 index .SPX.
Reporting by Ankit Ajmera in Bengaluru; Editing by Sriraj Kalluvila