Exclusive: GE seeks buyer for fuel dispenser unit - sources
By Soyoung Kim
NEW YORK (Reuters) - General Electric Co (GE.N: Quote) is preparing to sell its energy unit that makes fuel dispensers in a deal that is expected to fetch more than $500 million, people familiar with the matter said on Thursday.
The diversified conglomerate has recently contacted private equity firms and other parties to gauge their interest in buying its Wayne subsidiary, part of GE Energy, the people said.
Credit Suisse Group is advising GE on the process, the people said, asking not to be named because the sale plans are confidential.
Wayne was part of Dresser Inc, the energy infrastructure company that GE bought in 2010 for $3 billion. That deal marked its largest acquisition since the financial crisis and heralded a series of takeovers by GE in the energy space in following years.
The Wayne unit, based in Austin, Texas, manufacturers fuel dispensers for petroleum retailers and commercial fleets as well as compressed natural gas equipment.
Representatives for GE and Credit Suisse declined to comment.
Generally, GE is investing more in its energy businesses as the conglomerate seeks to become a dominant supplier of equipment and services to oil, natural gas and alternative power companies. However, the fuel dispenser business is at the low-end of GE's energy offerings and is not a core interest.
In a sign of its focus on the oil and gas sector, GE last year bought oilfield pump maker Lufkin for about $3 billion. Earlier this week, GE Chief Executive Officer Jeff Immelt announced plans for the company to spend an additional $10 billion through 2020 to boost research on complex energy projects. Continued...