GE Energy to acquire Converteam for $3.2-bn

GE today said that it will acquire approximately 90 per cent of electrification and automation equipment and systems maker Converteam for approximately $3.2 billion from a controlling shareholder group that includes its management, Barclays Private Equity and LBO France.

The multi-sector energy efficiency, electrification and automation industry, in which Converteam participates, was valued at over $30 billion in 2010 and is growing at rates above global GDP growth, GE said in a statement.

The deal, which has been endorsed by Converteam's management team and employee representative groups, is expected to close during third quarter 2011, subject to customary closing conditions.

Converteam's senior management will retain the remaining approximately 10-per cent stake in the company.

GE has entered into agreements with Converteam's senior management to purchase the remaining shares in the company over the next two to five years at a price that could vary based on the time of sale, business performance and other factors. GE expects that the price should be no more than approximately $480 million.

Headquartered in Massy, France, Converteam announced 2010 sales of approximately $1.5 billion and EBITDA of approximately $239 million, with approximately 36 per cent growth in orders versus 2009.