GE Energy Completes $3.2 Billion Deal to Acquire Converteam
GE Energy announced the successful completion of its $3.2 billion acquisition of Converteam, a provider of power conversion and automation systems and power electronics, motors and generators. Converteam states that its solutions enable customers in a variety of industries to replace or improve mechanical processes with high-efficiency electric alternatives that deliver better reliability, less maintenance and lower emissions. GE Energy states that the acquisition furthers its commitment to create a center of excellence for power conversion technology, which is designed to fuel strong growth opportunities for many of its businesses. Converteam’s addition is also said to complement GE Energy’s existing capabilities in energy conversion, industrial automation and process efficiency.
Converteam’s portfolio includes variable frequency drives and other power electronics, advanced motors and generators, as well as industrial automation and controls. Converteam’s products are said to be widely used in the renewable energy sector, turning intermittent and variable power from solar, wind and tidal sources into the high quality and reliable power required by grid operators throughout the world. As part of the growing trend of electrification in the oil and gas industry, its technologies are used to drive mission critical customer equipment in the production and transportation of hydrocarbons. Converteam also offers a broad range of automation and control systems that allow customers to optimize their production processes in the metals, mining and other industries.
The Converteam purchase completes $11 billion in recent acquisitions by GE Energy that have significantly broadened the company’s reach across the energy landscape. GE’s acquisition strategy targets deals in infrastructure segments which are complementary to the company’s core technologies and where there are clear operating synergies. In the last nine months, GE Energy has completed the acquisition of Dresser, Inc; Wellstream Holdings plc; Lineage Power; Well Support (from John Wood Group plc); and Converteam.
Approximately 25% of the world’s electricity is used to power motors in a wide range of industries and applications. Converteam’s high-efficiency products and systems are designed to materially reduce the electricity consumption of these industrial motors, leading to savings in energy consumption of up to one-third and bringing customers significant savings in terms of cost, energy intensity and greenhouse gas emissions. The company’s expertise and geographical reach also will enhance GE’s ability to bring localized solutions to fast growth regions, including Brazil, Russia, China, India and the Middle East.
"GE is thrilled by the growth opportunities that this acquisition brings. GE will heavily invest in new product developments to further expand our offerings in core segments such as metals and marine, while addressing increasing demand for high energy efficiency in oil and gas, thermal power generation and renewables," said John Krenicki, GE Vice Chairman and President and CEO of GE Energy. "We are fortunate to have GE veteran Joe Mastrangelo to run the Converteam business."
"The complementary capabilities of GE and Converteam will create a winning platform for success," said Pierre Bastid, President and CEO, Converteam. "GE’s brand and reputation as an engineering and technology provider are unmatched. Converteam brings a team of experts with deep domain knowledge in power conversion, equipped with a strong entrepreneurial mindset and unique technological expertise aligned to customers’ needs."