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General Electric Co. said Monday it will buy the gas turbine unit of Stewart & Stevenson Services Inc. for $600 million in cash, eliminating a competitor in the growing power plant equipment business.
The unit converts turbines GE makes for aircraft engines into power sources for smaller electric-generation plants.
GE also makes gas turbines for power plants fueled by natural gas.
Their construction is expected to boom as electricity sales are deregulated worldwide.
“For GE, it represents the elimination of a competitor in a lucrative part of its business,” said Jeffrey Beach, an analyst with Hanifen Imhoff Inc. in Denver.
