General Electric Corporation is apparently planning to sell its industrial gas engine business for around USD 2 billion. Last month, the CEO of the firm had declared that the firm could break up into various divisions and that the spin-offs of any of the divisions including, power, aviation, and healthcare were not ruled out. The divesture of the industrial gas engine business, including Waukesha & Jenbacher engines, has been reported to help in the expansion of GE’s power sector. Apparently, last year the firm’s power division had demonstrated a 45% dip in profits with a sharp decline in its sales.Sources cite that GE has employed the services of Citigroup Incorporation for developing the selling process blueprint for the industrial gas engine business. The division for sale manufactures gas turbines that produce on-site electricity to keep the plants operational. The firm has claimed that Waukesha and Jenbacher turbines provide power in the range of 100 KW to 10 MW to the GE’s industrial units. In the last quarter of 2017, the CEO of GE had announced that the company will withdraw nearly USD 20 billion from its business operations for improving its fiscal performance.
As a part of the company audit, General Electric Corporation is reportedly searching various alternatives for its transportation division to enhance the performance & operational efficiency of railway engines, iconic lighting division, and healthcare IT business. Nearly 50% of the company’s stock price plummeted in the last 12 months, building pressure on the firm from its shareholders, including hedge fund activist Trian Fund Management LP.
For the record, Reuters had reported that GE signed on a sale deal of a small part of its overseas lighting business a few days ago. The firm’s decision to sell its industrial gas engine business along with a portion of the lighting business has been claimed by analysts to improve its financial position over the next few years.