INNIO plans U.S. expansion
25 September 2023
Acquiring largest U.S. distributor
INNIO Group said it will acquire Northeast-Western Energy Systems (NES-WES), a leading power systems integrator in the U.S.
With this decision, INNIO continues its growth strategy in the U.S. and builds a nationwide offering for new installations and energy services in the U.S.
NES-WES, part of Penn Power Group, is one of the leading distributors for Jenbacher solutions globally. INNIO has been working with NES-WES for the past 20 years to develop the market in North America and established a local installed base for its Jenbacher product brand. NES-WES has evolved to be the largest distributor for Jenbacher solutions in the U.S. with an experienced management team, a highly skilled workforce, and an industry-leading customer service organization in place, the company said.
NES-WES has a large installed base of Jenbacher engines in the 500 kW – 5.0 MW range supported by very strong parts and service capabilities. This provides a strong foundation to build a nation-wide leading distributed energy business, integrating engines, renewable technologies, energy storage systems, standby power systems, microgrids and related services, INNIO said. Through the acquisition, INNIO said it is in the position to rapidly scale the business and expand its share for firm-hybrid microgrids, peaking power and renewable gas applications.
“Building on our successful collaboration with the very experienced Northeast-Western Energy Systems team, we will now be able to further grow our business in North America. Not only can we increase our offering for new installations and related services, but we add outstanding microgrid and project management expertise to our team,” said Dr. Olaf Berlien, president and CEO of INNIO Group.
Al Clark, President and CEO of NES-WES added: “As the largest distributor for Jenbacher solutions in the U.S., we know the Jenbacher product portfolio and applications extremely well and have experienced significant, increased demand for INNIO’s energy solutions first-hand. We have strong in-house capabilities to design, integrate, build, operate and maintain small to large, distributed energy systems, microgrids, balance of plant systems for continuous duty, peaking, and fast start data center applications. Combined with INNIO’s immense growth and innovation potential we will be well positioned to expand INNIO’s market position in the U.S. We are truly very pleased to join forces and excited about the opportunities of this partnership.”
The transaction is expected to close in the fourth quarter of 2023. Terms were not disclosed.