Monday, June 25, 2018
Source: Reuters
U.S. buyout group Advent agreed to buy General Electric Co’s distributed power unit for $3.25 billion,marking GE’s exit from a growing segment of the power business.GE had put the unit, which makes Jenbacher and Waukesha brand reciprocating gas engines, up for sale as part of a three-year plan to exit about $20 billion in industrial assets. GE hopes to book as much as $10 billion in such proceeds this year.
The sale, expected to close in the fourth quarter, highlights the growing demand for reciprocating engines by utilities, which pair them with wind and solar generators. Because the engines start quickly, they can fill in when wind and sun falter and then be shut off when not needed, conserving fuel. Large power turbines cannot start as quickly and so must be kept spinning at partial power even when wind or solar electricity supplies are ample.Advent plans to “invest substantially” in critical areas such as the product portfolio, service network and digitization to build up the company’s market position.
Read more at Reuters.