Otter Tail did not name the interested buyer but said that a "nonbinding letter of interest" has been signed for DMI’s property, plant and equipment. The transaction is expected to close by 3 January.
If the sale does not proceed, Otter Tail said it will close its facilities in North Dakota and Oklahoma and sell DMI's fixed assets after finishing the backlog of orders for 2012.
The company cited market conditions, including uncertainty over extension of the Production Tax Credit, as reasons for the sale.
DMI, based in North Dakota, has some 500 employees and plants in West Fargo, North Dakota and Tulsa, Oklahoma, according to its website. DMI’s Canadian plant was idled in the fourth quarter of 2011.
DMI was part of the US-based Wind Tower Trade Coalition, whose members also included Broadwind Energy, Katana Summit and Trinity Structural Towers, that filed a complaint with the Department of Commerce.
In 2008, Windpower Monthly reported the company was rapidly expanding its production capacity (40% in West Fargo and by 100% in Tulsa). At the time, it was set to become the US's largest tower provider.