The acquisition will help GE Vernova’s two key Electrification businesses. Credit: Piotr Swat/Shutterstock.com.
US-based energy technology company GE Vernova has agreed to acquire Trench Group from investment company Triton Partners, for an estimated value of $9bn.
The agreement is intended to strengthen its Electrification segment by integrating Trench’s high-voltage grid equipment into its portfolio.
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The deal is projected to close in late 2027, subject to regulatory approvals and employee consultations where required.
Trench Group supplies high- and medium-voltage bushings, instrument transformers, and coils, serving over 800 utility and hyperscale customers worldwide.
The company, which has operated for over 130 years, employs more than 3,000 staff across 11 manufacturing facilities in North America, Europe, and Asia.
Trench expects revenues of $1.9bn and an approximately 36% adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin in 2028.
The acquisition purchase price reflects a multiple of 13 times the projected 2028 adjusted EBITDA before synergies, with GE Vernova planning to fund the transaction evenly between cash and debt.
According to GE Vernova, the acquisition will help its two key Electrification businesses, Power Transmission and Grid Systems Integration, by increasing manufacturing capacity and integrating complementary products.
The company also cited an existing $5bn backlog at Trench that extends into the next decade.
Trench Group president and CEO Dr Bahadir Basdere said: “Trench Group has spent more than 130 years earning the trust of the world’s leading utilities and grid operators. Joining GE Vernova will be a defining opportunity to build on that legacy with even greater capabilities and reach.
“GE Vernova’s global scale, customer relationships, and footprint in key growth regions will offer more market participants access to the high-voltage components that the energy transition demands. Our team is excited about the development and growth opportunities that the combination with GE Vernova is expected to create.”
Trench products are used in many global high-voltage direct current lines and contribute to grid modernisation efforts, offering SF6-free and mineral oil-free technologies.
The company recently opened a manufacturing facility in Charlotte, North Carolina, where production of 765kv equipment is anticipated to begin by late 2027.
Last month, Vineyard Wind and GE Vernova settled a confidential commercial legal dispute related to the Vineyard Wind offshore project in Massachusetts, US.
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Source: www.power-technology.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
