GE Energy plans to sell its hydro business to Pescarmona Group of Companies. The sale includes GE Energy’s worldwide hydro business, excluding GE’s hydro operations in Norway and Sweden, although an offer by PGC to purchase the operations in Norway and Sweden is under consideration.
Terms of the agreement were not disclosed. The closing of the transaction, subject to customary conditions, iis expected to occur during the first quarter 2007.
“We are pleased to enter into this agreement with PGC and believe this is a positive development for our hydro segment customers, our employees and our shareholders,” said John Krenicki, President and CEO of GE Energy. “The move positions PGC to provide additional value to hydro customers by combining the tremendous industry expertise of our hydro employees, as well as GE’s hydro technology and assets with PGC’s existing operations, through IMPSA.”
Besides having its main focus on the hydro industry, PGC maintains a presence in businesses such as wind power generation and equipment, port systems, automobile parts, control systems, environmental services and insurance.
GE Energy’s hydro segment is headquartered in Schenectady, NY and employs approximately 2,000 people globally.