Deal to support the growth of the industrial electronics industry has closed, bringing a total value of $1 billion to the U.S. economy.
The deal is a joint venture between American Global Group, a subsidiary of U.K.-based Siemens and General Electric.
The consortium includes Siemens’ industrial communications and equipment and GE’s industrial playground equipment, both of which are the largest manufacturers of industrial equipment in the world.
The two companies said they signed a 10-year, $1,300 million agreement in March 2019.
“It was a great day for GE, GE is a great company and I am very excited about the future,” said John Hildreth, General Electric CEO, in a statement.
“We are a global company and our success depends on our ability to deliver our products to customers around the world and build a stronger U.C.I.P. economy for our people.
The GE-American Global Group Industrial Communication and Equipment group will benefit from GE’s growing expertise in industrial communications, equipment and infrastructure and our world-class supply chain, including GE’s GE Networks and GE Electronics, which includes GE’s equipment and power supplies.”
GE’s Industrial Electronics Group is based in Northfield, Michigan.
The company is a member of GE’s Global Supply Chain, including its GE Networks, GE Electronics and GE Power and Energy.
“Our global supply chain provides us with the ability to bring together GE’s world-leading capabilities, support GE’s customers, and continue to expand our global footprint,” said GE President and CEO Jeff Immelt.
“GE’s Industrial Communication & Equipment group is poised to support GE as it continues to expand globally.
It is a natural fit for us to bring a new era of industrial communications into a new industry that is in high demand.”
The deal includes $1 million in cash payments, including a $200 million purchase option.
“I am thrilled that GE has chosen to invest in GE’s manufacturing capabilities and expand its presence in this rapidly changing market,” said Michael R. Ollis, president of GE Advanced Solutions.
“In addition to our ongoing investments in our manufacturing capabilities, GE has a long history of working with the U