General Electric (GE) recently announced that it has 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, as well as manufacturing sites in Austria, Canada and the United States.
“This transaction not only accelerates our reinvestment in our business, but also enables Distributed Power to be best positioned to pursue its growth strategy,” said Russell Stokes, president and chief executive officer of GE Power.
A business unit of GE Power, Distributed Power is a leading provider of reciprocating gas engines, power equipment and services focused on power generation and gas compression. The company has approximately 3,000 employees and three main facilities located in Austria, the United States and Canada.
“In Advent, we have a partner that shares our team’s passion for delivering outstanding customer outcomes,” said Carlos Lange, president of Distributed Power. “Our Jenbacher and Waukesha brands and engines are recognized 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.”
As one of the largest private equity investors, Advent has completed more than 100 transactions in the industrials, energy and business services sectors. The firm has a global network and extensive experience in carve-outs of large industrial companies to support the Distributed Power business in expanding its market position and establishing a 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 International. “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 the end of 2018, subject to customary closing conditions and regulatory approvals.
For more information, visit www.ge.com.