Log in | Subscribe | RSS feed

What’s New

Advent to acquire GE distributed power unit

25 June 2018

Advent International, a Germany-based global private equity firm, agreed to acquire General Electric’s Distributed Power business 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.

Distributed Power, a business unit of GE Power, is a leading provider of reciprocating gas engines, power equipment and services focused on power generation and gas compression at or near the point of use. Distributed Power offers fuel-flexible, industrial gas engines from 200 kWe to 10 MWe. With 3,000 employees and three main facilities located in Austria, the United States and Canada, Distributed Power has delivered more than 48,000 Jenbacher and Waukesha reciprocating gas engines to customers around the world. In 2017, the Distributed Power business had sales of $1.317 billion.

“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,” said Ranjan Sen, Managing Partner at Advent International.

The demand for reciprocating engines is driven in part by the growing solar and wind energy sector. Since gas engines can be started quickly, utilities use them to provide backup for the intermittent solar and wind power generation.

Advent prevailed in the auction against Cummins, according to media reports. The transaction is expected to close by the fourth quarter 2018.

Last month, Wabtec acquired GE Transportation, another unit of the troubled General Electric company.

Source: Advent