GE Vernova of the U.S. Plans to Acquire Germany's Trench Group for $9 Billion

en.Wedoany.com Reported - On October 28, U.S. energy equipment manufacturer GE Vernova reached an agreement with investment firm Triton Partners to acquire German high-voltage grid equipment manufacturer Trench Group for approximately $9 billion. The transaction is expected to be funded roughly half with cash and half with debt, with closing planned for the end of 2027. The acquisition covers Trench's high-voltage grid equipment manufacturing operations in Europe, North America, and Asia, as well as related production facilities and customer orders.

Trench Group is headquartered in Berlin, Germany, and operates 11 manufacturing plants in 8 countries with more than 3,000 employees. Its main products include high- and medium-voltage bushings, instrument transformers, coils, cable terminations, and capacitors, serving more than 800 power utility companies and large customers worldwide. The group's existing orders and framework agreements total approximately $5 billion, with some agreements extending beyond 2030.

The acquisition will also include Trench's new plant in Charlotte, North Carolina, USA. The plant has already opened and is scheduled to begin manufacturing 765 kV high-voltage equipment by the end of 2027. GE Vernova plans to integrate Trench's products and manufacturing capabilities into its grid systems integration and transmission business, covering high-voltage transmission equipment supply and related manufacturing.

According to GE Vernova's transaction projections, Trench Group is expected to generate revenue of $1.9 billion in 2028, with an adjusted EBITDA margin of approximately 36%. The two parties expect to achieve annual cost synergies of $50 million to $100 million by 2030.