As General Electric refocuses on its core industrial lines of business, one of its units is buying more power assets.
The Schenectady, N.Y. firm on Tuesday said that GE Power struck a deal to buy the heat recovery steam generator (HRSG) business of South Korean-based Doosan Engineering & Construction for $250 million. The acquisition will help GE Power meet the growing demand for its combined-cycle power plant solutions, which utilize HRSG technology, and continue to expand its offerings.
“The Doosan Engineering & Construction HRSG acquisition will help us meet our forecasted growth and better manage costs by increasing our global manufacturing capacity and further complementing our existing HRSG technology,” the unit’s president and chief executive Steve Bolze said in a press release.
Upon completion of the sale, the HRSG business would be integrated into GE Power’s gas power systems business, which already includes Alstom’s legacy HRSG business, acquired in November 2015.
General Electric last month reported that revenue from its core industrial businesses grew 6% in the first quarter as the company continued its efforts to divest most of its banking and finance arm.
Core revenue for the first quarter rose $25.87 billion, with GE booking a 62% increase in revenue from renewable energy. That segment accounted for 40% of total revenue growth.
The company on Friday also reaffirmed its earnings guidance for 2016 of $1.45 to $1.55 per share, 2% to 4% organic growth, and margin expansion. GE also reiterated its commitment to return $26 billion to shareholders.