GE looks to add Converteam to portfolio

Converteam is presently owned by a shareholder group that includes management, Barclays Private Equity, and LBO France. The value of the deal is put at around $3.2 billion. GE says that the transaction is supported Converteam’s management and the employee representatives. If the deal is approved by the various authorities, it should be closed in the second half of the year.

Converteam, which is headquartered in Massy, France, but has companies in various other countries, says that it operates across six key vertical sectors: offshore and onshore oil and gas, power generation, wind and solar renewables, industrial, marine, and services. It has 5,300 employees, including more than 1,600 engineers. Up to 2005, it was part of Alstom, formerly known as Cegelec, which in turn had its roots in various companies including Germany’s AEG, Westinghouse Drives of the USA and the UK’s General Electric Corporation (a different company from GE in the USA).

Converteam’s portfolio includes drives and power electronics, advanced rotating machines, generators, and controls. As far as the marine sector is concerned, Converteam is involved in both merchant and naval sectors with power generation, electric propulsion, and distribution and controls solutions. GE says that it will grow this segment by utilising its existing aeroderivative propulsion technology, global reach, and cost competitive supply chain. The two companies are said to fit together well, and complement each other across all sectors.