GE Continues to Focus on Industrials Businesses, Buys Steam Turbine Engine Services Supplier
GE sold Antares Capital and its appliances unit, as part of its restructuring efforts
General Electric Co.’s (NYSE: GE) power division says it will purchase Doosan Engineering & Construction’s heat recovery steam generator (HRSG) business for $250 million. Doosan is a Korean-based engineering firm and the target already supplies GE’s power unit.
GE says the deal complements its 2015 purchase of Alstom’s power business. Around that same, GE also bought Metem Corp. Doosan’s HRSG business provides project management, engineering and manufacturing services. The target has one manufacturing facility in Korea and two in Vietnam.
HRSG is a process where exhaust heat is captured from gas turbines. The water is converted to steam and is then used to a drive a steam turbine and produce power.
“The Doosan Engineering & Construction HRSG acquisition will help us meet our forecasted growth and better manage costs by increasing our global manufacturing capacity and further complementing our existing HRSG technology,” says GE power CEO Steve Bolze. BDA Partners is advising Doosan.
Along with making acquisitions, GE has also been divesting assets. Earlier in 2016, the company agreed to sell its home appliances business and announced plans to sell its headquarters. In August 2015, GE closed the sale of Antares Capital. Antares co-CEOs David Brackett and John Martin won Mergers & Acquisitions’ 2015 M&A Mid-Market Award for Dealmakers of the Year.
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