General Electric Company to acquire M601 turboprop maker Walter Engines a.s

General Electric Company (GE) has signed a definitive agreement to purchase the assets of the Prague-based Walter Engines a.s., maker of the M601 turboprop that powers the Let L-410 19-seat commuter aircraft, for an undisclosed sum The transaction will be completed upon receipt of various regulatory approvals and customary closing conditions.

"Walter Engines will broaden GE's capabilities in the small turboprop segment of aviation," said Scott Donnelly, president and chief executive officer of GE Aviation, division of General Electric. "Walter Engines has a strong heritage and an outstanding customer base. GE seeks to expand upon Walter's capabilities as we look forward to operating a growth business in the Czech Republic."

"The access to financial and technological resources of GE will benefit our current and future customers," said Michal Cerny, chairman of the board of Walter Engines.

Walter Engines entered the aviation business in 1923 and has produced more than 37,000 engines. The Walter M601 turboprop engine family has more than 1,500 engines in service on more than 30 aircraft types. In addition to manufacturing and overhauling turboprop engines, Walter Engines also manufactures high precision-machined parts for the aviation industry with customers worldwide. The company employs about 520 employees in the Czech Republic.

GE Aviation, an operating unit of General Electric Company (NYSE: GE), is a world-leading provider of commercial and military jet engines and components as well as integrated digital, electric power, and mechanical systems for aircraft. GE Aviation also has a global service network to support these offerings.