GE said it was selling an energy investment portfolio to Apollo Global Management as it continues to shed parts of its business.
Although terms of the deal were not disclosed, the companies said the package includes about 20 investments in renewable energy, natural-gas-fired power and midstream energy infrastructure assets, mostly in the U.S. The package is worth about US$1 billion, according to the companies.
The deal comes less than a week after GE replaced John Flannery as president and CEO with Larry Culp, the former CEO of Danaher Corp.
The sale “reflects ongoing progress executing GE Capital’s strategy, and enables us to continue to deliver on our commitments and provide value to GE, “ Alec Burger, president of GE Capital, said in prepared remarks.
GE Energy said its Financial Services continues to use its expertise to invest in and structure third-party financial solutions for GE’s power and renewable energy customers, globally.
“We believe this transaction provides us with a unique opportunity to acquire a diversified portfolio of high-quality energy infrastructure assets with attractive risk-adjusted return profiles,” said Geoffrey Strong, Senior Partner at Apollo. “In addition, we look forward to working with GE’s team on future energy infrastructure investment opportunities.”
The sale is expected to be completed in the fourth quarter.