Advent International has agreed to acquire General Electric‘s (NYSE: GE) 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 US.
Distributed Power, a business unit of GE Power, is a provider of reciprocating gas engines, power equipment, and services that are used for power generation and gas compression at or near the point of use. The unit’s product portfolio includes industrial gas engines generating 200 kW to 10 MW of power sold under the Jenbacher and Waukesha brands.
Distributed Power, led by its President Carlos Lange, had $1.3 billion in revenues in 2017 and has approximately 3,000 employees and three facilities located in Austria, the US and Canada.
“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 Mr. Lange. “Advent will help accelerate our growth as we continue to execute on our priorities.”
“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. “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.”
Advent International invests in companies active in business and financial services; healthcare; industrial; retail, consumer and leisure; and technology, media and telecom. Advent has 14 offices in 12 countries and employs 190 investment professionals across North America, Europe, Latin America and Asia. Founded in 1984 and headquartered in Boston, Advent has $39 billion in assets under management and has completed more than 335 buyout and private equity transactions (www.adventinternational.com).
This transaction is expected to close by the fourth quarter of 2018.
© 2018 Private Equity Professional | June 25, 2018