General Electric (NYSE:GE) has reached an agreement to acquire Metem Corporation, a U.S-based provider of precision cooling hole manufacturing technologies.
Turbine blade cooling is an important component of GE's next generation of advanced gas turbines, and Metem's products help turbine engines function more efficiently, reducing emissions, increasing operation times and saving costs.
The companies have had a relationship since the 1970s, and GE is currently Metem’s largest customer.
The acquisition will expand GE’s in-house ability to provide fully-integrated, comprehensive machining solutions and grow the company’s cooling hole-drilling work.
The companies will operate as separate businesses until the close of the transaction, expected in early 2016.