From The Wall Street Journal
General Electric Co. GE +3.19% said Monday it is offloading a portfolio of energy investments to Apollo Global Management APO -1.86% LLC, as the troubled conglomerate continues to sell off pieces of its business it now views as ancillary.
A unit of GE Capital and private-equity firm Apollo didn’t disclose the financial terms of the deal, other than to say the approximately $1 billion portfolio includes equity investments in renewable energy, natural-gas fired power and midstream energy infrastructure assets, mostly in the U.S.
The deal comes amid tumult at GE, which last week fired John Flannery from the chief executive position at the company for slow progress on turning around the company. GE has said it will not meet profit and cash-flow goals for 2018, and plans to take an accounting charge worth up to $23 billion in its power unit. Larry Culp, the former CEO of Danaher Corp., has been appointed to take Mr. Flannery’s place.
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.
In a statement Monday, GE and Apollo said they would seek to potentially invest in “select future new energy infrastructure” deals going forward.
The sale is expected to be completed in the fourth quarter.
