China’s Electric motor producer, Wolong Electric Group Co. has acquired the Small Industrial Motor (SIM) division of General Electric Company (NYSE:GE). As per the deal signed recently, the largest electric motor producing company of China will pay $160 million all in cash to GE. The deal became effective from June 30, 2018, after which GE SIM has now become an integral part of the global business of Wolong Electric.
Wolong Electric SIM sales office to be located in Houston
The deal was signed by the Chairman of Wolong Electric, Chen Jian Cheng and the President and CEO of GE Power, Russell Stokes at a recently held ceremony held in Atlanta in the United States. The acquisition will include development, design, manufacturing, sales and other things related to the low-voltage, totally enclosed and fan-cooled motors with a medium voltage below 1,750 horsepower. As per the reports, the sales office of Wolong Electric SIM will be located in Houston, Texas.
According to Chen, “ 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 Chairman of Wolong further added that the acquisition is a major milestone for Wolong’s global strategy.
Wolong signed 10-year Trademark Agreement with GE
The assets that Wolong acquired from GE include 100% equity of GE Industrial Motors Mexico Corporation, 100% equity of GE Motor Services Corporation, the employees in the business and 13 other entities who are in some way involved in GE’s assets. As per the news, Wolong also has signed a Trademark License Agreement of 10 years with GE that allows Wolong to sell the products of the American motor producing company in the United States through the SIM business. This acquisition of SIM will help to expand its sales channel and also will enable SIM to sell its important products to the European and Chinese markets, work in close co-operation with two continents.
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According to Chen, the accumulated expertise of SIM in motor technology and a sound network of sales will help it to become the North American Business Center of Wolong.