GE buys converteam

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

versus 2009.

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).