Jenbacher In Wärtsilä’s Future?

Premium Content

31 May 2018

A Wärtsilä official reiterated the company’s interest in buying GE’s distributed power operations.

“Jenbacher is a leading company in smaller gas engines and gas compressors, and they have been quite successful in areas which are actually just below our sizes,” Wärtsilä CFO Marco Wirén said during an investor meeting.

“They are more focused on commercial and industrial customers whereas we are more in the utility space and IPP’s (independent power producers).”

Wirén was responding to a question about Jenbacher and how it fit into Wärtsilä’s portfolio. During the meeting, Wirén said ongoing market consolidation creates opportunities that are evaluated in terms of strategic fit.

“It’s a very good company and they have good products,” Wirén said.

Cummins and several private equity firms are also reported to be interested in the Jenbacher portfolio.

GE has said it might announce a deal by the middle of the year for the unit.

The unit includes Waukesha engines. Selling the industrial gas engine business would help streamline GE’s power division, whose profit plunged last year as sales of power plants and services fell sharply. Jenbacher and Waukesha engines cover the small to mid-sized segment of GE’s power business, ranging from 100 kW to 10 MW.

–Jack Burke

 

POWER SOURCING GUIDE

The trusted reference and buyer’s guide for 83 years

The original “desktop search engine,” guiding nearly 10,000 users in more than 90 countries it is the primary reference for specifications and details on all the components that go into engine systems.

Visit Now

STAY CONNECTED



Receive the information you need when you need it through our world-leading magazines, newsletters and daily briefings.

Sign up

CONNECT WITH THE TEAM
Becky Schultz Vice President of Content Tel: +1 480 408 9774 E-mail: [email protected]
Julian Buckley Editor Tel: +44 (0) 1892 784088 E-mail: [email protected]
Chad Elmore Managing Editor E-mail: [email protected]
Tony Radke Vice President of Sales Tel: +1 480 478 6302 E-mail: [email protected]