ATLANTA, Ga., Nov. 19, 2002 — GE Power Systems announced plans to acquire Jenbacher A.G. of Austria, a major supplier of reciprocating gas engines for power generation.
Jenbacher A.G., headquartered in Jenbach, Austria, manufactures gas fueled reciprocating engines and generator sets for power generation applications, and is a recognized innovator in cogeneration and the utilization of biogas and waste gases. Following the completion of the acquisition, Jenbacher will be integrated with GE Distributed Power, a unit of GE Power Systems.
“The fit between GE Power Systems and Jenbacher will allow us to better serve the distributed power needs of our global customers,” said John G. Rice, President and CEO of GE Power Systems. “By combining Jenbacher’s excellent technology and engineering resources with the global capabilities of GE Power Systems, we will create an even broader portfolio of products and services that we can offer for a wide range of clean energy and industrial applications worldwide.”
GE and a group of major shareholders of Jenbacher have signed an agreement for the sale of the group’s controlling interest in Jenbacher, in cash, to a wholly owned subsidiary of GE as part of a combined private/public transaction. GE will make a public tender offer for the remaining shares of Jenbacher at Euro 17.43/share.
The major shareholders will receive a control premium as contemplated by the Austrian Takeover Act. The tender offer will be subject to government approvals and other conditions. The transaction is expected to close in the first quarter of 2003.
The agreement announced Tuesday builds on an existing relationship between GE Power Systems and Jenbacher. In 1999, GE and Jenbacher signed a distribution agreement naming GE Distributed Power as Jenbacher’s exclusive distributor in North and South America for natural gas engines, gen-sets and cogeneration systems.
Jenbacher A.G., with worldwide employment of 1,250, reported sales of Euro 249 million in 2001. The company manufactures gas reciprocating engines and packaged generator sets, with outputs up to 3 megawatts, capable of utilizing a variety of gas fuels for power generation. The use of clean natural gas in combination with patented combustion systems enables Jenbacher’s generation packages to meet the strictest international emissions standards while also performing at high levels of efficiency.
“Jenbacher has highly-regarded technology and a solid product line with excellent opportunities for growth, and we welcome the resources of a larger organization to take the company to the next level,” said Herbert Liaunig on behalf of the major shareholders. “We have made a number of technological advancements in our industry and expect to continue to do so in the future with the benefit of GE’s global resources.”
About GE Power Systems
GE Power Systems (www.gepower.com) is a supplier of power generation technology, energy services and management systems with 2001 revenues exceeding $20 billion. Based in Atlanta, GA, GE Power Systems provides equipment, services and management solutions across the power generation, oil and gas, distributed power and energy rental industries.
Jenbacher (www.jenbacher.com) started manufacturing reciprocating engines in 1948. Today it is a manufacturer of gas-fueled reciprocating engines and generator sets for power generation applications worldwide. These products are used by a broad range of industrial, commercial, and institutional customers. Jenbacher is traded on the Vienna exchange under the symbol JEB.
Source: GE Power Systems