U.S. buyout group Advent agreed to buy General Electric Co’s (GE) distributed power unit for $3.25 billion, marking GE’s exit from a growing segment of the power business.
GE had announced plans to divest about $20 billion in assets as part of a three-year restructuring plan, hoping to book as much as $10 billion in proceeds from selling industrial assets this year.
The sale, expected to close in the fourth quarter, highlights the growing demand for reciprocating engines by utilities, which pair them with wind and solar generators.
Advent’s purchase values the unit at about 11.2 times 2018 earnings before interest, tax, depreciation and amortization of just below $290 million. Last year it posted revenue of $1.3 billion.