GE to buy around 90% of Converteam for $3.2 billion

GE to buy around 90% of Converteam for $3.2 billion

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Asia Bizz: General Electric Co. (GE) is ready to buy Converteam which belongs to LBO France as well as Barclays Private Equity Ltd. The amount is around $3.2 billion, and this will enable the company to add some more equipment that helps the flow of electricity to power grids from wind turbines.

GE said that the senior management of Converteam will retain 10 perfect stake and and it will acquire around two to five years which will exceed $480 million.

Last year,  Converteam had $239 million in earnings and $1.5 billion in sales.

John Krenicki the CEO of GE Energy infrastructure said,

“We’ve picked up a great asset,We’ve been hunting this for a long time.”

In the past 6 months, GE has spent over $11 billion in acquisitions with the main aim of broadening the scope of it’s energy related business. In February this year, GE signed a deal to acquire Wood Group PLC at a price of $2.8 billion, making it yet another expensive acquisition for the year. Late 2010, the company acquired another company at a high price – Dresser Inc. for around $3 billion.

The American company, GE, is reported to be the world’s second largest company by Forbes in 2010, after JPMorgan Chase.