NEW YORK, June 30 (Xinhua) -- Wolong Electric Group Co., Ltd., China's largest electric motor producer, has closed a deal to acquire General Electric Company (GE)'s Small Industrial Motor (SIM) division for 160 million U.S. dollars in an all cash transaction.
Chen Jiancheng, Wolong Electric Chairman and Russell Stokes, President and Chief Executive Officer of GE Power, jointly signed the closing documents for Wolong Electric's acquisition of GE's mid- and low-voltage motor business at a ceremony in Atlanta, the U.S. state of Georgia, on Friday.
Effective as of June 30, 2018, GE SIM will officially become a pivotal part of Wolong Electric's global business, Chen told Xinhua via phone.
"The acquisition is an important milestone for our global strategy," Chen said. "Through this cooperation, we will further strengthen our core business, expand the global sales network, develop technical collaboration globally, improve best-in-class manufacturing, grow our global market share and further consolidate Wolong Electric's global leadership position in motor and control."
The acquisition includes the design, development, manufacture, sales and other areas of the low-voltage and TEFC medium-voltage motors below 1,750 horsepower.
The assets mainly include 100 percent equity of General Electric Industrial Motors Mexico Corporation, 100 percent equity of General Electric Motor Services Corporation, and other 13 entities involved in assets, and the employees related to these businesses.
Chen said Wolong has also signed a 10-year Trademark License Agreement from the date of closing with General Electric, which will help Wolong to sell its products with the GE brand to the American market through the SIM business. Meanwhile, this acquisition will expand SIM's sales channels, enable SIM to sell its key products to China and European markets, and create synergy through close cooperation between operations in two continents.
The new Wolong Electric SIM Sales will be headquartered in Houston, the U.S. state of Texas, Chen said.
He believes SIM, with its accumulated expertise in motor technology and a sound sales network, will become Wolong's Business Center in North America and provide high-quality GE-branded mid- and low-voltage motors for the global market.
Founded in 1984, Wolong Electric is a part of Wolong Holding Group Co., Ltd., one of China's largest 500 enterprises. With more than 18,000 employees globally and 4.4 billion dollars in assets, Wolong Group reached 5.4 billion dollars in the 2017 revenue. Wolong Electric mainly focuses on designing and manufacturing a variety of motors and drive controls.
As Wolong Electric is committed to becoming a world-class, industry-leading motor developer and producer, the company's production network is strategically located in Asia, Europe and North America. Wolong Electric has established R&D centers for motors and drive controls in Europe, the United States, and Japan, and plans to open a Global R&D Center in Shanghai.