GE Energy to buy Converteam for $3.2B
GE Energy is acquiring roughly 90 percent of the French company Converteam Group SAS, which has its North American headquarters in Pittsburgh, in a $3.2 billion deal that is expected to close in the third quarter.
Converteam employs just more than 300 people in O'Hara Township. A local spokeswoman said the local arm of the company is not foreseeing any changes based on the deal and it will continue to be “business as usual.”
Converteam is expected to become a fourth unit within GE Energy. The move is expected to expand GE’s capabilities and extend the reach of Converteam into emerging markets such as Brazil, Russia, China and the Middle East.
GE is acquiring its stake from a group of existing shareholders that includes senior management of the Massey, France-based company, Barclays Private Equity and LBO France, according to a statement released by GE. Converteam's senior management is holding onto a roughly 10 percent share of the company; however, GE is expected to purchase the remaining shares over the next two to five years.
Converteam’s technology replaces or improves mechanical processes with high-efficiency electric alternatives that ultimately saves energy and improves performance in areas such as drives and other power electronics, advanced rotating machines, generators and controls. End markets include onshore and offshore oil and gas, power generation, wind and solar renewables, industrial and marine industries.
Read more in the Pittsburgh Business Times.
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