GE’s energy unit to buy 90% of Converteam for $3.2bn
GE's (NYSE:GE) energy unit has agreed to pay $3.2 billion in cash for a 90% stake in Converteam, a French provider of power-conversion components.
The deal is GE's latest in a series of acquisitions to expand its energy business. In February, the company announced it would buy the well support unit of John Wood Group for $2.8 billion, after agreeing to pay $1.3 billion for Wellstream Holdings, a maker of oil exploration equipment, in December.
In 2010, Converteam, based in Massy, France, had sales of $1.5 billion and EBITDA of about $239 million, with 5,300 employees.
Converteam's current major shareholders include Barclays' private equity unit and the company's management, which will retain the remaining 10% stake.
GE said it has agreed to buy the 10% holding over the next two to five years and expects to pay no more than $480 million for the slice.
Connecticut-based GE anticipates about $250 million in annual operating synergies from the deal by the fifth year. In the last six months, the company has made $11 billion worth of acquisitions in the energy sector.
The Converteam transaction, subject to customary conditions, is expected to close during the third quarter.
Related news
- Mariana Resources kicks off drilling programme at Las Calandrias gold-silver project
- Orogen Gold begins Phase 1 drilling programme at Deli Jovan
- Magnolia Petroleum on track to hit 100 wells target by end-2012
- Mwana Africa sells 15pct stake in Freda Rebecca gold mine for $405k - UPDATE
- Genel Energy on track as production increases
- Rambler Metals & Mining raises further C$4.13 million from Tinma International
- Wasabi Energy completes purchase of minority stake to own Global Geothermal
