19 November 2002 – GE Power Systems, a unit of US conglomerate General Electric Co. said on Tuesday that it has offered to buy a majority stake in Austrian power equipment maker Jenbacher AG.

Jenbacher A.G., headquartered in Jenbach, Austria, manufactures gas fuelled reciprocating engines and generator sets for power generation applications, and is a recognized innovator in cogeneration and the utilization of biogas and waste gases.

GE said in a statement that a 55.56 per cent majority of Jenbacher’s shareholders signed a purchase agreement that also lets GE make a voluntary offer for the remaining free-float shares at €17.43 per share, versus Monday’s €15 closing price.

Jenbacher’s free remaining float comprises 44.44 per cent of the firm’s 10 million issued shares. On Monday, the Vienna Stock Exchange halted trading of Jenbacher shares.

The price of the offer, which is subject to approval by anti-monopoly authorities, valued the Austrian company at €174.3m.

“The fit between GE Power Systems and Jenbacher will allow us to better serve the distributed power needs of our global customers,” said John G. Rice, President and CEO of GE Power Systems. “By combining Jenbacher’s excellent technology and engineering resources with the global capabilities of GE Power Systems, we will create an even broader portfolio of products and services that we can offer for a wide range of clean energy and industrial applications worldwide.”

Jenbacher has around 1250 employees worldwide and posted revenues of €249m last year. Following the completion of the acquisition, Jenbacher will be integrated with GE Distributed Power, a unit of GE Power Systems.

In the past the two companies have collaborated through a distribution deal for natural gas engines, gen-sets and cogeneration systems in North and South America.