Advent International Completes Acquisition Of GE’s Distributed Power Business

The US$3.25 billion sale of GE’s Distributed Power business to Advent International is complete. The stand-alone business has been rebranded as INNIO, a new energy company that includes the Jenbacher and Waukesha engine lines, digital platforms, and related service offerings. INNIO will serve as the company’s master brand, with Jenbacher and Waukesha maintaining their individual brand identities under the company’s business structure. Carlos Lange, who served as president of GE’s Distributed Power business, will lead INNIO as the company’s president and CEO.

“I’m fully aware that from a customer perspective, our brands are the major point of contact,” said Lange. “That means that the Jenbacher and Waukesha brands will stay as they are, but they will also be part of a combined, standalone energy solutions company under the INNIO brand. From a customer perspective, these product lines will remain the major point of contact.”

The Jenbacher and Waukesha product lines have a long history in power generation and gas compression, creating an engine portfolio that currently spans from 200 kW to 10 MW. In addition to new units, the company has a global service network that will continue to provide support for the what INNIO quantifies as more than 48,000 installed units worldwide.

“The Jenbacher and Waukesha product brands and technologies are recognized worldwide for their performance, reliability, and technological excellence,” said Ranjan Sen, managing partner at Advent International. “We anticipate continued sustained growth in power generation and gas production technologies on a global scale.”

“If you look back over the last couple of years, we have been growing at a double-digit growth rate year-over-year,” said Lange. “Moving forward, we expect the growth to be in the mid to high single-digit range, with growth in each business segment we operate in. We see strong growth across many geographies in all of our product lines.”

INNIO will be headquartered in Jenbach, Austria, with additional operations in Welland, Ontario, Canada, and Waukesha, Wisconsin, USA. The newly minted, US$200 million+ manufacturing center in Welland, Ontario, Canada, is on track to become the company’s primary North American manufacturing center by mid-2019. Plans are in place to phase out manufacturing at its Waukesha plant, while maintaining that facility as a Center of Excellence, continuing to house engineering, product management, and service activities.

“This is an exciting time to emerge as a standalone energy company,” said Lange. “With the continued growth of renewables across the globe and the increased emphasis on energy efficiency, INNIO is well-positioned to be a key enabler and integral part of the energy transformation. Jenbacher and Waukesha product lines have a rich history and a very strong reputation. By combining the strength from our different brands, we will create one larger story driven by our overarching INNIO mindset. Our mindset is we are curious — we push beyond the possible; we are determined — we believe that every engine should be a technological masterpiece; we are people-centric — with us, you buy more than a machine; and finally, we are pioneering — tomorrow belongs to the bold.”