Power outage

25 June 2018 By Tom Buerkle Follow @tombuerkle

The conglomerate is selling its distributed-power unit to buyout shop Advent for $3.25 bln. It brings CEO John Flannery closer to his divestment target but doesn’t really cut debt or bolster earnings. That will require bigger sales or spinoffs, and probably another dividend cut.

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General Electric said on June 25 it agreed to sell its distributed-power business to Advent International for $3.25 billion. The division makes industrial gas engines under the Jenbacher and Waukesha brands that generate power for commercial, industrial and municipal customers. It had sales of $1.3 billion in 2017 and is expected to have earnings before interest, tax, depreciation and amortization of nearly $290 million this year, Reuters reported, citing a person close to the matter.

GE shares were down 1.5 percent at $12.86 at 1:25 p.m. EDT.

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