GE's Dribs and Drabs of Deals Need to Add Up
An overhaul by increments demands patience that investors may not have.
A billion here, a billion there ...
Photographer: Jeff Kowalsky/Bloomberg
General Electric Co. is adding another few billion to its depleted coffers, but it’s got a long way to go.
The beleaguered industrial giant, fresh off its demotion from the Dow Jones Industrial Average, on Monday announced the sale of its distributed-power business to private equity firm Advent International. The headline deal value is $3.25 billion, although I will note that it’s generally good practice to wait for the fine print on GE divestitures. Past price tags have been watered down by deal taxes or a need to direct cash to GE Capital for receivables. There are also no public details yet as to the fate of any pension liabilities associated with the unit, which sells Jenbacher and Waukesha industrial gas engines.