GE has signed an agreement to sell its Distributed Power business unit to Advent International, one of the largest global private equity investors, for $3.25 billion. The transaction includes Distributed Power’s Jenbacher and Waukesha engines, as well as manufacturing sites in Austria, Canada and the USA. The Distributed Power unit is a leading supplier of reciprocating gas engines, power equipment and services focused on locally sited power generation and gas compression . Its products include fuel-flexible industrial gas engines rated at 200 kWe to 10 MWe. The business had sales of $1317 million for the year ended 31 December 2017.
Carlos Lange, president of Distributed Power, said, “In Advent, we have a partner that shares our team’s passion for delivering outstanding customer outcomes. Our Jenbacher and Waukesha brands and engines are recognised all over the world for their performance and reliability, and Advent’s deep sector expertise will allow us to further strengthen our capabilities for the benefit of our worldwide customers. Advent will help accelerate our growth as we continue to execute on our priorities.”
“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 International. “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 digitisation to support Distributed Power in sustainably strengthening its market position.”
The transaction is expected to close by the fourth quarter of 2018, subject to customary closing conditions and regulatory approvals.