GE Vernova to Acquire Remaining 50% Stake of Prolec GE
GE Vernova has announced plans to acquire the remaining fifty percent stake of Prolec GE, its unconsolidated joint venture with Xignux.
The deal will accelerate GE Vernova's Electrification segment’s growth trajectory by expanding its presence in and support for North America, where demand for grid technologies is increasing. The acquisition will expand GE Vernova’s capability to serve both North American and global customers, at a time in which these markets are experiencing rapid electricity demand growth, driven in part by the growth of data centers and new policies implemented to expand the deployment of critical grid and electrification equipment.
Prolec GE is a grid equipment supplier, producing transformers across most ratings and voltages with approximately 10,000 global employees across seven manufacturing sites globally, including five in the U.S. The joint venture was established between Xignux and General Electric (GE) in 1995, and the acquisition will consolidate Prolec GE after 30 years of partnership.
"This transaction provides the opportunity for this business and team to continue their growth under the capabilities of a global leader," said Xignux CEO Juan Ignacio Garza Herrera. "We reaffirm our commitment to México and will continue driving our other businesses in North America by investing in innovation, technology and expansion, while contributing to the development and integration of the region.”
Recent Prolec GE capacity expansion and innovation investments exceed $300 million in the U.S. and Mexico, including a $140 million investment and the creation of 330 new jobs over the next three years in Goldsboro, NC.
Under the purchase agreement, GE Vernova will pay $5.275 billion at closing, expected to be funded equally between cash and debt. The acquisition is expected to close by mid-2026, subject to the completion of customary regulatory approvals.
Morgan Stanley & Co. acted as financial advisor to GE Vernova on the transaction and Skadden, Arps, Slate, Meagher & Flom provided legal counsel to GE Vernova. J.P. Morgan Securities advised Xignux and Sidley Austin served as legal counsel to Xignux.