Boston-based buyout firm Advent has announced that it has agreed to acquire the Distributed Power business of General Electric (GE) in a deal valued at $3.25bn.
The division has approximately 3,000 employees globally, accounting for $1.317bn sales last year alone.
The sale, expected to complete in Q4 2018, continues to aid GE in its cost cutting plan, first announced last year, with the company aiming to shed $20bn worth of assets of the course of 36 months.
“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.
The deal will include Distributed Power’s leading assets such as its Jenbacher and Waukesha engines, alongside a number of manufacturing sites across Austria, Canada and the US.
“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,” said Carlos Lange, President of Distributed Powers. “Advent will help accelerate our growth as we continue to execute on our priorities.”
GE Power generates approximately one third of the world’s electricity, whilst 40% of the world’s energy is managed by the company’s software.