General Electric Company GE recently announced that it has initiated a deal for an undisclosed amount with The Procter & Gamble Company PG to acquire 2.5 acres of the latter’s 44-acre South Boston campus.
The deal includes two six-story former Necco candy manufacturing buildings spread across 110,000 square feet. The deal is likely to be closed within a year. General Electric intends to invest around $80 million to $100 million on renovation and construction of a new building at the site.
Home to some of the world’s most renowned companies, South Boston is a prime hub for innovation and development. Earlier this year, General Electric announced that it was going to shift its headquarters from Fairfield, CT to Boston, MA. The centrally located property would help the company enhance its business in the Seaport District and the neighboring community.
After evaluating various aspects such as, talent, long-term costs, employee experience and global connectivity among others, South Boston was chosen as the site for the new headquarters. Massachusetts is globally the highest spender on research & development and Boston attracts technologically-fluent personnel.
Nearly 5,000 employees of the company are engaged in businesses like Aviation, Oil & Gas and Energy Management in Massachusetts. In addition, Boston serves as the headquarters of its Life Sciences business and energy services start-up, Current.
Roughly 800 employees, including around 200 corporate staff and 600 digital industrial product managers, developers and designers working for GE Digital, Current, robotics and Life Sciences will reside in the region once the headquarters are ready for relocation.
The company plans to be an active part of the Boston community and gain an edge over competitors through innovation and research & development.
General Electric carries a Zacks Rank #3 (Hold). Some better-ranked stocks worth a look include Barloworld Ltd. BRRAY and Carlisle Companies Incorporated CSL. Both the stocks carry a Zacks Rank #2 (Buy).
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