GE Energy to acquire Converteam for $3,2 billion 31 March 2011
GE Energy is to acquire approximately 90% of French electrification and automation equipment firm Converteam for approximately $3.2 billion.
The transaction, endorsed by Converteam's management team and employee representative groups, is expected to close during third quarter 2011, and leaves a 10% stake in the hands of Converteam's senior management.
Converteam – which majors on drives and other power electronics, rotating machines, generators and controls in the oil and gas, power generation, renewables, industrial and marine sectors – is a good fit for GE.
"Converteam's world-class people and energy efficient products and services connect a lot of pieces in our portfolio which will enable us to offer integrated solutions to our customers," states John Krenicki, president and CEO of GE Energy.
"High-efficiency, fully electric solutions represent a megatrend across the global energy landscape," he adds.
"GE and Converteam complement each other superbly," comments Pierre Bastid, president and CEO of Converteam.
"As a long-standing partner, GE fully understands our business model and will add significant value by allowing our technologists to work within GE's tremendous network of researchers and engineers."
Bastid now expects Converteam, within GE Energy, to expand its global footprint by tapping into what he describes as a world-class supply chain.
"Within the GE family, Converteam now has the opportunity for further development and growth, benefitting our customers and employees alike," he says.
Headquartered in Massy, France, Converteam currently has 5,300 employees, including more than 1,600 engineers, and operates in more than 80 countries. The firm recently announced 2010 sales of $1.5 billion and EBITDA of approximately $239 million, with 36% growth in orders versus 2009.
The energy efficiency, electrification, and automation industry was valued at more than $30 billion in 2010 and is growing at rates above global GDP growth.
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