General Electric Company
) recently closed the acquisition of the aviation unit of
Italy-based company Avio S.p.A for $4.3 billion. The aviation
unit is a provider of civil and military aviation components and
systems. Avio's space unit, however, was not a part of the
Renamed as Avio Aero, a GE Aviation business, it will retain its
headquarters in Turin, Italy. The unit employs around 4,700
people, with 4,000 employees based in Italy. Avio Aero operates
plants in Italy, Poland, Brazil and China.
With the new acquisition, General Electric aims to pursue new
opportunities in sectors like oil, marine products and
power-generation. Avio Aero is expected to enhance General
Electric's global capabilities and engineering strength.
On the other hand, with its huge client portfolio, General
Electric will strengthen Avio Aero's market position as a
supplier to additional industrial and aviation companies. Avio
Aero already supplies content for General Electric's engines
ranging from large engines for the commercial aircraft sector to
smaller engines for civil and military helicopters.
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The acquisition enhances General Electric's presence and know-how
in low-pressure turbines, combustion technology, mechanical
transmission and automation systems, thereby increasing its
profitability. Further, General Electric plans to extend products
and services already being offered by Avio Aero through planned
General Electric is one of the most diversified technologies and
financial service corporations in the world. Its segments include
Power & Water, Oil & Gas, Energy Management, Aviation,
Healthcare, Transportation, Home & Business Solutions and GE
GE Aviation is a leading supplier of commercial and military jet
engines and components. It also provides avionics, electric power
and mechanical systems for aircraft along with an extensive
global service network to support these products. In the last
reported quarter, revenues from the Aviation segment climbed 9%
year over year to $5.3 billion.
General Electric currently has a Zacks Rank #3 (Hold). Other
stocks that look promising and are worth a look now include
Hutchison Whampoa Ltd
), with a Zacks Rank #1 (Strong Buy) and
), both carrying a Zacks Rank #2 (Buy).