Advent International said June 25 that it agreed to buy General Electric’s Distributed Power business for $3.25 billion. The deal includes Distributed Power’s Jenbacher and Waukesha engines, as well as manufacturing sites in Austria, Canada and the U.S.
Boston, June 25, 2018 – Advent International, one of the largest and most experienced global private equity investors, today announced that it has signed a definitive agreement 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 U.S. Distributed Power provides reciprocating gas engines, power equipment and services focused on power generation and gas compression at or near the point of use.
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 a diverse product portfolio that includes highly efficient, fuel-flexible, industrial gas engines generating 200 kW to 10 MW of power for numerous industries globally. With approximately 3,000 employees and three main facilities located in Austria, the U.S. and Canada, Distributed Power has delivered more than 48,000 Jenbacher and Waukesha reciprocating gas engines to customers around the world. The Distributed Power business had sales of $1,317 million for the year ended December 31, 2017.
With over 100 transactions successfully completed in the Industrials, Energy and Business Services sectors, Advent is one of the most experienced global investors in these sectors. The firm invests in well-positioned companies with significant operational and strategic potential and partners with management teams to create value by driving revenue and earnings growth. Advent has a strong global network as well as extensive experience in carve-outs of large industrial companies to significantly support the Distributed Power business in expanding its market position and establishing a strong standalone entity.
Carlos Lange, President 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.”
“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.”
“GE Power will continue to invest in developing the energy technologies of the future and improving the power networks we depend on today. 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.
GE Power, which generates one-third of the world’s electricity, is a leader in power generation with deep domain expertise to help customers deliver electricity from a wide spectrum of fuel sources. Its technology has equipped 90% of power transmission utilities worldwide, and 40% of the world’s energy is managed by its software. GE Power has a strong installed base, innovative technologies and digital offerings that help make power more affordable, reliable, accessible and sustainable.
The transaction is expected to close by the fourth quarter 2018, subject to customary closing conditions and regulatory approvals.
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About Advent International
Founded in 1984, Advent International Corporation (“Advent”) is one of the largest and most experienced global private equity investors. The firm has invested in over 335 private equity transactions in 41 countries, and as of March 31, 2018, it had €33 billion in assets under management. Advent International GmbH was established in Germany in 1991, and provides investment advice to Advent through its Frankfurt-based advisory team.
Advent has successfully invested in the industrial, energy, and oil and gas sectors in recent years across the globe. Examples in Germany include allnex, a global leader in resin coatings for the paint and coatings industry and Oxea, a leading supplier of oxo alcohols and oxo derivatives. Across Europe, Advent has also invested in Brammer, a leading pan-European distributor of industrial maintenance, repair and overhaul products and services; Ammeraal Beltech, the global market leader for light process and conveyor belts; and Faerch Plast, the Scandinavian market leader for food packaging. In North America, relevant investments include Culligan International Group, a global leader in water softening and cleaning products and services; Fort Dearborn, a leading supplier of prime labels; and Quala, the largest independent provider of cleaning and environmental services to the chemical and food industries in North America. It has also invested in NCS Multistage, a leading manufacturer of well products used in horizontal oil and gas well completion in the energy sector. In Latin America, Advent has invested in companies including, VIAKEM, a leading manufacturer of fine chemicals; GMT, a transnational distributor of chemical raw materials; and Oleoducto Central (Ocensa), the largest oil transportation system in Colombia.
Advent also has extensive investment experience in spin-offs from renowned international companies such as Anglo American, Bayer, BP, Celanese, Cytec, Deutsche Post, Dow Chemicals, Evonik, Fifth Third Bank, Hoechst, Lafarge, Philips, Rhodia, Sanofi, RWE, Total and Wacker Chemie.
After more than 30 years dedicated to international investing, Advent remains committed to partnering with management teams to deliver sustained revenue and earnings growth for its portfolio companies. With management teams, investment advisors, operating partners and other stakeholders, Advent creates a shared vision for the future of our portfolio companies and works collectively to realise the potential we see.