Prospective buyers line up for GE Distributed Power business

Wartsila and Cummins are among the suitors for the impending sale of General Electric’s distributed power business.

Reuters reports the Finnish and US businesses as interested parties for the $3.6bn valued operation as GE looks to sell to bolster its finances.

GE said last week it might be able to announce a deal by mid-year for the unit, which includes the reciprocating gas engines makers GE Jenbacher and Waukesha.
GE Jenbacher engine
Besides the aforementioned, buyout groups Advent, Bain, CVC, KKR and B&C Holding have made it to the second round of the auction, according to sources mentioned by the news agency.

One of the people said that, before final bids, the suitors may be asked for confirmatory offers in a couple of weeks.

GE Chief Executive Officer John Flannery, who took the helm last summer, reiterated last week he was open to breaking up the company and said a spin-off of any of its units, which include power, healthcare and aviation, was a possibility.

GE has said it expects to book as much as $10bn in proceeds from divesting industrial assets this year.

Selling the industrial gas engine business would help streamline GE’s power division, whose profit plunged last year as sales of power plants and services fell sharply.

The unit for sale makes multi-tonne gas turbines that generate on-site power to keep industrial plants running. Jenbacher and Waukesha engines cover the small to mid-sized segment of GE’s power business, ranging from 100 kilowatts to 10 megawatts.

Jenbacher has its roots and large production facilities in Austria and was acquired by GE in 2003, while Waukesha, founded in 1906 in Wisconsin as a maker of engines for trucks and tractors, has been part of GE since 2010.


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