GE Energy has entered into an agreement to acquire approximately 90% of
Converteam, a leading provider of electrification and automation
equipment and systems, for approximately $3.2 billion.
Converteam's solutions enable customers in a variety of industries to
replace or improve mechanical processes with electric
alternatives. Converteam's portfolio includes drives and other power
electronics, advanced rotating machines, generators, and controls.
Headquartered in Massy, France, Converteam has 5,300 employees, including more than 1,600 engineers, and operates in more than 80 countries. Converteam recently announced 2010 sales of approximately $1.5 billion and EBITDA of
approximately $239 million, with approximately 36% growth in orders
Sales of fully electric solutions are expected to grow at 15% annually
in compression applications within the global oil and gas industry.
Electrification is a growing trend in the natural gas storage and
pipeline transportation segments where utility and compression plant
operators are faced with increased cost competitiveness, stringent
emissions regulations, and supply security pressures. In addition, fully
electric solutions will grow in the global offshore exploration and
production segment where spending has returned to 2008
pre-financial-crisis levels and is estimated at $490 billion in 2011 (up
11% versus 2010).