GE Energy to Acquire Converteam for $3.2B

GE GE announced today that its Energy business has entered into an agreement to acquire approximately 90 percent of Converteam from a controlling shareholder group that includes management, Barclays Private Equity and LBO France, for approximately $3.2 billion. The transaction, endorsed by Converteam's management team and employee representative groups, is expected to close during third quarter 2011, subject to customary closing conditions. Converteam's senior management will retain approximately a 10 percent stake in the company. GE and Converteam senior management have entered into agreements pursuant to which GE would purchase the remaining shares in the company over the next two to five years. The price for the shares can vary based on the time of sale, business performance and other factors. GE expects that the price should be no greater than approximately $480 million.