Daily News: June 26, 2018

GE to Sell Distributed Power Biz to Advent for $3.25B

GE signed an agreement to sell its Distributed Power business to Advent International for $3.25 billion. The transaction includes Distributed Power’s Jenbacher and Waukesha engines and manufacturing sites in Austria, Canada and the U.S.

Distributed Power, a business unit of GE Power, provides reciprocating gas engines, power equipment and services focused on power generation and gas compression at or near the point of use. With approximately 3,000 employees and three main facilities, Distributed Power has delivered more than 48,000 Jenbacher and Waukesha reciprocating gas engines to customers around the world. The Distributed Power business had sales of $1,317 million in 2017.

Advent is an experienced global investor in the industrials, energy and business services sectors. It has a global network in carve-outs of large industrial companies to support the Distributed Power business in expanding its market position and establishing a strong standalone entity.

“Distributed Power is a terrific asset with highly regarded engines that are the go-to OEM for the efficient generation of electrical power and heat as well as gas compression,” said Ranjan Sen, managing partner at Advent. “The business has significant growth potential on a global scale and talented employees all over the world. We plan to invest substantially in critical areas such as the product portfolio, service network and digitization to support Distributed Power in sustainably strengthening its market position.”

The transaction is expected to close by Q4/18, subject to customary closing conditions and regulatory approvals.

GE Power, which generates one-third of the world’s electricity, is a power generation company that helps customers deliver electricity from a wide spectrum of fuel sources.