Key Takeaways
- • GE has signed an agreement to sell its Distributed Power business to Advent International for $3.25 billion, marking a significant divestiture from GE Power's portfolio.
- • The transaction includes the Jenbacher and Waukesha reciprocating gas engine brands, along with three manufacturing facilities located in Austria, Canada, and the United States.
- • Distributed Power generated $1,317 million in sales during 2017 and operates approximately 3,000 employees globally, having delivered more than 48,000 engines to customers worldwide.
- • Advent International, a global private equity firm with over 100 completed transactions in Industrials, Energy, and Business Services sectors, will leverage its operational expertise and network to position Distributed Power as a standalone entity and accelerate growth.
- • The deal reflects GE's ongoing strategic portfolio rationalization, allowing the conglomerate to focus capital and management resources on higher-priority business units.
Summary
General Electric announced on June 25, 2018, that it has agreed to sell its Distributed Power business unit to Advent International for $3.25 billion. The transaction encompasses the company's Jenbacher and Waukesha reciprocating gas engine brands—both leading providers of fuel-flexible industrial gas engines ranging from 200 kilowatts to 10 megawatts in capacity—along with primary manufacturing operations in Austria, Canada, and the United States.
Distributed Power, operating as a business unit within GE Power, serves multiple industrial verticals with power generation and gas compression equipment deployed at or near the point of use. The business generated approximately $1.3 billion in annual revenue for the fiscal year ending December 31, 2017, and maintains a global installed base exceeding 48,000 engines. The division employs roughly 3,000 personnel across its three main facilities.
Advent International, one of the largest global private equity investors with significant experience in large-scale industrial carve-outs, brings substantial operational and strategic capabilities to the acquisition. The firm has completed over 100 transactions in Industrials, Energy, and Business Services sectors and maintains a global network positioned to support the standalone entity's expansion and market consolidation. Advent's investment strategy emphasizes driving revenue and earnings growth through operational improvements and strategic positioning alongside experienced management teams.
The sale represents part of GE's broader portfolio optimization strategy, enabling the company to monetize non-core assets while concentrating resources on priority divisions. For Advent, the acquisition provides a well-capitalized, operationally mature platform with established customer relationships, manufacturing infrastructure, and recognized product brands across global markets. The transaction was advised by Milbank on behalf of Advent International.
Distributed Power, operating as a business unit within GE Power, serves multiple industrial verticals with power generation and gas compression equipment deployed at or near the point of use. The business generated approximately $1.3 billion in annual revenue for the fiscal year ending December 31, 2017, and maintains a global installed base exceeding 48,000 engines. The division employs roughly 3,000 personnel across its three main facilities.
Advent International, one of the largest global private equity investors with significant experience in large-scale industrial carve-outs, brings substantial operational and strategic capabilities to the acquisition. The firm has completed over 100 transactions in Industrials, Energy, and Business Services sectors and maintains a global network positioned to support the standalone entity's expansion and market consolidation. Advent's investment strategy emphasizes driving revenue and earnings growth through operational improvements and strategic positioning alongside experienced management teams.
The sale represents part of GE's broader portfolio optimization strategy, enabling the company to monetize non-core assets while concentrating resources on priority divisions. For Advent, the acquisition provides a well-capitalized, operationally mature platform with established customer relationships, manufacturing infrastructure, and recognized product brands across global markets. The transaction was advised by Milbank on behalf of Advent International.
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