The century-old but struggling multinational business conglomerate, General Electric, is all set to sell-off its gasification business to the industrial gases and chemicals seller Air Products and Chemicals Inc (APD, $157.37) for an undisclosed amount.
For GE, it comes as a part of its divestiture strategy to secure the company’s long-term future.
But for APD, this acquisition is highly beneficial as it allows the company to widen its synthesis gas (syngas) solutions product offerings. Furthermore, with the proven technological strength of GE, it enhances APD’s capabilities along with complementing its recent gasification technology acquisition. It also helps APD to build its presence in owning and operating gasification projects around the world.
According to the APD’s Chairman, Seifi Ghasemi, "the addition of GE's technology, deep customer and application knowledge, and talented and dedicated employees to Air Products' gasification portfolio is expected to enhance its ability to provide complete onsite solutions for the entire gasification facility."
Through this deal, APD gets to own GE's share of its 50/50 joint venture (JV) with China Shenhua Coal to Liquid and Chemical Company, Ltd., a subsidiary of China Energy Group, a globally renowned energy company. Further, with this acquisition, APD gets its hand on over 1,000 patents relating to GE's gasification technology, which has been deployed at over 90 sites, with over 240 gasifiers, and represents over 36,000 MWth (thermal megawatts) of syngas production.