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General Electric Company (GE - Analyst Report) recently closed the acquisition of the aviation unit of Italy-based company Avio S.p.A for $4.3 billion. The aviation unit is a provider of civil and military aviation components and systems. Avio’s space unit, however, was not a part of the acquisition.

Renamed as Avio Aero, a GE Aviation business, it will retain its headquarters in Turin, Italy. The unit employs around 4,700 people, with 4,000 employees based in Italy. Avio Aero operates plants in Italy, Poland, Brazil and China.

With the new acquisition, General Electric aims to pursue new opportunities in sectors like oil, marine products and power-generation. Avio Aero is expected to enhance General Electric’s global capabilities and engineering strength.

On the other hand, with its huge client portfolio, General Electric will strengthen Avio Aero's market position as a supplier to additional industrial and aviation companies. Avio Aero already supplies content for General Electric’s engines ranging from large engines for the commercial aircraft sector to smaller engines for civil and military helicopters.

The acquisition enhances General Electric's presence and know-how in low-pressure turbines, combustion technology, mechanical transmission and automation systems, thereby increasing its profitability. Further, General Electric plans to extend products and services already being offered by Avio Aero through planned investments.

General Electric is one of the most diversified technologies and financial service corporations in the world. Its segments include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Home & Business Solutions and GE Capital.

GE Aviation is a leading supplier of commercial and military jet engines and components. It also provides avionics, electric power and mechanical systems for aircraft along with an extensive global service network to support these products. In the last reported quarter, revenues from the Aviation segment climbed 9% year over year to $5.3 billion.

General Electric currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look now include Hutchison Whampoa Ltd (HUWHY), with a Zacks Rank #1 (Strong Buy) and ITT Corp. (ITT - Analyst Report) and AGCO Corp. (AGCO - Analyst Report), both carrying a Zacks Rank #2 (Buy).

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