By Renewable Energy Focus staff
GE Energy will incorporate Converteam into its centre of excellence for Power Conversion. Depending on approvals, the acquisition is expected to be closed in the third quarter of 2011.
Converteam says the deal will enable it to reach new markets, and provide access to additional investment capacity and infrastructure.
Pierre Bastid, Chairman and CEO of Converteam, comments: “GE is the ideal partner for Converteam. Our strong position in the Power Conversion business is highly complementary to GE’s global leadership in the energy value chain. This transaction will significantly bolster Converteam’s strategic ambitions to further globalize its business, strengthen its worldwide delivery capabilities and create a reference industrial player.
“It will also help Converteam build the strength and scale to compete on major international contracts. We look forward to the outstanding offerings in power conversion this partnership will bring to our clients as well as the unique benefits it will provide for our employees.”
John Krenicki, GE Vice Chairman and President and CEO of GE Energy, adds: “High-efficiency, fully electric solutions represent a mega trend across the global energy landscape. Our customers across key industries are demanding more reliable, efficient, and flexible solutions in order to improve their competitiveness. Converteam’s world-class people and energy efficient products and services connect a lot of pieces in our portfolio and will enable us to offer integrated solutions to our customers.”
Converteam will remain an autonomous profit centre following the acquisition.
Within GE Energy, the contribution of Converteam will be reflected by growth in annual revenues of ca. €1.1 billion, according to the companies.