Archive photo: High-voltage substation equipment, not a GE Vernova or Trench facility. MrDr3igeteilt/Pexels (cropped)
GE Vernova agreed Wednesday to buy high-voltage grid-equipment supplier Trench Group from Triton Partners for the equivalent of $9 billion, expanding its transmission business as utilities and data centers drive demand for power infrastructure.
The company said in its acquisition announcement that it expects to fund the purchase equally with cash and debt. Closing is expected in late 2027, subject to regulatory approvals and required consultations with employee representatives. The deal has been agreed, not completed.
Adding capacity for high-voltage grids
Trench is an existing GE Vernova supplier. It makes bushings, instrument transformers, coils and other components used in high- and medium-voltage networks. The business employs more than 3,000 people and has 11 manufacturing sites across Europe, North America and Asia.
GE Vernova said the acquisition would strengthen its Grid Systems Integration and Power Transmission businesses. It cited a newly opened Trench facility in Charlotte, North Carolina, where manufacturing of 765-kilovolt equipment is expected to begin in late 2027.
The buyer projects Trench will generate $1.9 billion in 2028 revenue with an adjusted EBITDA margin of about 36%. Adjusted EBITDA is a non-GAAP measure, and these figures are forecasts for Trench as a standalone business, before expected synergies.
GE Vernova said Trench had about $5 billion in backlog and framework agreements, some extending into the next decade. The company described the purchase price as equivalent to 13 times projected 2028 adjusted EBITDA before synergies.
The $9 billion price is a U.S.-dollar equivalent based on a euro-dollar exchange rate of 1.12. The final dollar equivalent can change with exchange rates.
JBizNews Desk | Cambridge, Massachusetts
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