Wolong acquires GE’s motor business
Print Edition
WOLONG Electric Group Co Ltd, China’s largest electric motor producer, has closed a deal to acquire General Electric Company’s Small Industrial Motor division for US$160 million in an all-cash transaction.
Chen Jiancheng, Wolong Electric chairman, and Russell Stokes, president and CEO of GE Power, jointly signed the closing documents for the Chinese firm’s acquisition of GE’s mid- and low-voltage motor business at a ceremony in Atlanta in Georgia, on Friday.
Effective as of Saturday, GE SIM will officially become a pivotal part of Wolong Electric’s global business, Chen said.
“The acquisition is an important milestone for our global strategy,” Chen said. “Through this cooperation, we will further strengthen our core business, expand the global sales network, develop technical collaboration globally, improve best-in-class manufacturing, grow our global market share and further consolidate Wolong Electric’s global leadership position in motor and control.”
The acquisition includes the design, development, manufacture, sales and other areas of the low-voltage and TEFC medium-voltage motors below 1,750 horsepower.
The assets mainly include 100 percent equity of General Electric Industrial Motors Mexico Corporation, 100 percent equity of General Electric Motor Services Corporation, and 13 other entities involved in assets, and the employees related to them.
Chen said Wolong has also signed a 10-year Trademark License Agreement from the date of closing with GE, which will help Wolong to sell its products with the GE brand to the American market through the SIM business. Meanwhile, this acquisition will expand SIM’s sales channels, enable SIM to sell its key products to China and European markets, and create synergy through close cooperation between operations in two continents.
The new Wolong Electric SIM Sales will be headquartered in Houston in Texas, Chen said.
He believes SIM, with its expertise in motor technology and a sound sales network, will become Wolong’s business center in North America.
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