$3.5bn acquisition for GE
French Converteam Group purchased by GE to expand energy portfolio
General Electric has announced that it has agreed the acquisition of a specialist power-conversion company for more than $3.5 billion, as it attempts to widen its high-efficiency equipment for a variety of applications.
A 90 per cent stake in the French Converteam Group will be purchased by GE at a cost of $3.2 billion, with the remaining shares to be purchased from senior executives over the next two to five years, costing no more than $480 million.
The company announced that it would acquire the Converteam from a controlling shareholder group, which includes LBO France and Barclays Private Equity, with the initial purchase scheduled for close in the third quarter of 2011.
With 5,300 employees, Converteam reported earnings of $239 million last year, and GE’s interest in the company is reported to be the opportunity to widen its portfolio of equipment for the oil and gas, thermal power and renewable energy markets. So far in 2011, GE has invested billions in energy-related assets, and is the world’s largest supplier of power generation equipment.