Zacks_Analysts' Blog : GE Acquires Calnetix Power Assets - Analyst Blog

With the world recognizing the industrial waste heat utilization as an important source of energy, General Electric Co. (GE) expanded its portfolio with the acquisition of certain assets of Calnetix Power Solutions, a subsidiary of Los Angeles-based Calnetix Inc.



The assets acquired are capable of producing electricity by recovering waste heat from industrial processes. Capturing and using energy from industrial processes can contribute to the reduction of energy costs of industrial plants. Besides, the Calnetix Power Solutions’ assets, GE also acquired certain intellectual property related to waste heat recovery.



The acquired assets included Calnetix’s CPS 125kW Cleancycle product. Capstone Turbine Corporation (CPST), a leading producer of low-emission microturbine systems worldwide, has the exclusive distribution rights for Cleancycle and can integrate the product for microturbine applications.



Calnetix Inc. is engaged in the development and manufacture of high speed electric motors and generators, magnetic bearings and high frequency power electronics.



GE’s Energy Infrastructure segment, accounting for about 25% of first half 2010 revenue, is a leader in the field of development, implementation and improvement of products and technologies that harness resources such as wind, oil, gas and water. The segment has operations in North America, Europe, Asia, South America and Africa.



We currently maintain a Neutral recommendation on the stock, indicating performance in line with the market.