GE completes $3.2bn acquisition of French energy-tech firm

GE has completed its $3.2-billion acquisition of a power conversion and automation company whose technologies are widely used to help deliver energy from renewable sources.

Based in Massy, France, Converteam produces power electronics, motors, generators and other systems designed to provide high-efficiency, lower-emission electric alternatives for customers in a variety of industries. Its products are used to improve the reliability of power from intermittent sources like solar, wind and tidal. Its technologies are also used to support the growing electrification in the oil and gas industry.

The acquisition is aimed at strengthening GE Energy’s portfolio of power conversion technologies. It is part of a total of $11 billion in recent acquisitions designed to broaden GE Energy’s reach across the energy landscape.

The multi-sector energy efficiency, electrification and automation industry was valued at more than $30 billion in 2010.

Some 25 percent of the world’s electricity is currently used to power motors in a wide range of industries and applications. Converteam’s products and systems are designed to reduce the electricity consumption of industrial motors by up to one-third and save on cost, energy intensity and greenhouse gas emissions. According to GE, the company’s expertise and geographical reach will also enhance GE Energy’s ability to bring localized solutions to fast-growing regions like Brazil, Russia, China, India and the Middle East.

“GE will heavily invest in new product developments to further expand our offerings in core segments such as metals and marine, while addressing increasing demand for high energy efficiency in oil and gas, thermal power generation and renewables,” said John Krenicki, GE vice chairman and president and CEO of GE Energy.