General Electric Co. agreed to acquire privately-held Metem Corp., in a deal that aims to bolster GE’s competitiveness in heavy-duty gas turbine engines.
Financial terms of the deal, expected to close in the first quarter of 2016, weren’t provided.
Metem is a provider of precision cooling hole manufacturing technologies that enable turbine engines to function more efficiently. GE, which has had a relationship with the New Jersey company since the 1970s, is Metem’s largest customer.
During November, GE completed its acquisition of Alstom SA ’s power business, expanding GE’s power business. The Metem deal aims to help lower the overall cost base of products made by GE’s power unit.
GE is in the midst of a multiyear effort to return its focus back toward heavy industrial manufacturing and away from financial services.
It took more than 18 months and significant concessions for GE to complete its $10.3 billion purchase of the energy assets of Alstom SA, the company’s largest acquisition ever and a huge bet on the business of coal- and gas-fueled electricity-generating turbines.