GE plans to acquire Austrian-based Jenbacher, a supplier of gas reciprocating engines and packaged generator sets with outputs up to 3 MW.
Following the completion of the acquisition, Jenbacher will be integrated with GE Distributed Power, a unit of GE Power Systems.
GE and a group of major shareholders of Jenbacher have signed an agreement for the sale of the group’s controlling interest in Jenbacher, in cash, to the wholly owned subsidiary of GE as part of a combined private/public transaction. GE will make a public tender offer for the remaining shares of Jenbacher at 17.43 Euros/share. The major shareholders will then receive a control premium as contemplated by the Austrian Takeover Act.
The tender offer will be subject to government approvals and other conditions and is expected to close in the first quarter of 2003.
The agreement builds on an existing relationship between GE Power Systems and Jenbacher. In 1999, the two companies signed a distribution agreement naming GE Distributed Power as Jenbacher’s exclusive distributor in North and South America for natural gas engines, gen-sets and co-generation systems.
Jenbacher employs 1,250 people worldwide and reported sales of 249 million Euros in 2001.