Dow component General Electric continues to beef up its exposure to the energy sector through acquisitions. In its latest energy deal, GE said it will acquire 90% of France's Converteam for $3.2 billion. Converteam makes motors used in gas pipelines and wind turbines.
Connecticut-based GE (GE) will be able to purchase the remaining 10% of Converteam from the company's management team over the next two to five years for a sum not to exceed $480 million. GE said the deal, which is expected to close in third quarter, will add to its earnings within the first year of completion.
GE said the deal will provide $250 million in annual benefits with much of that coming in the form of cost savings in businesses where both companies have customers. Converteam had $1.5 billion in sales and $239 million in earnings before interest, taxes, depreciation and amortization last year, Bloomberg News reported citing GE.
GE has made $14 billion in acquisitions in the past year with $11 billion worth of those deals coming in the energy sector. The company did not rule out additional smaller acquisitions in the future.