Advent to acquire GE’s Distributed Power gas engines business for $3.25bn

Energy Acquisition News : US private equity firm Advent International has struck a $3.25 billion deal to acquire Distributed Power – the gas engines business of General Electric (GE).

Distributed Power is a provider of reciprocating gas engines, power equipment and services, focused on electricity generation and gas compression.

Russell Stokes – President and CEO of GE Power revealed that the sale of Distributed Power will help the company in speeding up reinvestment across its business. He also added that the transaction enables the Distributed Power business to continue along its growth strategy.

Advent acquisition of Distributed Power incudes the Jenbacher gas engines, the Waukesha gas engines and also the latter’s manufacturing factories in Austria, the US and Canada.

The product portfolio of Distributed Power is made up of industrial gas engines from as small as 200kW to as big as 10MW of power generation capacity.

The Jenbacher reciprocating gas engines are known for their fuel flexibility which enables them to be run not only on natural gas but also on multiple other gases.

A Jenbacher gas engines manufacturing plant. Photo courtesy of General Electric.

The Waukesha reciprocating gas engines, which can also run on various types of fuels, are said to have the capability of operating in harsh, remote environments to help in critical oilfield power generation, mechanical drive applications or gas compression.

Commenting on Advent acquisition of Distributed Power, Ranjan Sen – Managing Partner at Advent International, said: “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.

“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 Distributed Power business had recorded revenue of $1.31 billion in 2017 and has so far supplied more than 48,000 Jenbacher gas engines and Waukesha gas engines to various customers across the world.

Carlos Lange – President of Distributed Power, commenting on Advent acquisition 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 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.

“Advent will help accelerate our growth as we continue to execute on our priorities.”

Advent acquisition of Distributed Power is expected to be wrapped up by Q4 2018 should it meet all customary closing conditions and secure regulatory approvals.

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