GE's energy business has entered into an agreement to acquire approximately 90% of Converteam, a provider of electrification and automation equipment and systems, from a controlling shareholder group that includes Barclays Private Equity and LBO France, for approximately $3.2 billion.
The transaction, endorsed by Converteam's management team and employee representative groups, is expected to close during the third quarter of this year, subject to customary closing conditions.
Converteam's senior management will retain approximately 10% stake in the company. GE and Converteam's senior management have entered into agreements pursuant to which GE would purchase the remaining shares in the company over the next two to five years. The price for the shares can vary based on the time of sale, business performance and other factors. GE expects that the price should be no greater than approximately $480 million.
Converteam's portfolio includes drives and other power electronics, advanced rotating machines, generators and controls. The company operates in various sectors, including wind and solar energy, offshore and onshore oil and gas, and power generation.
SOURCE: GE Power & Water