GE Vernova to Acquire Full Ownership of Prolec GE to Strengthen Electrification and Grid Operations

The acquisition expands GE Vernova’s Electrification segment and enhances its capability to meet rising grid demand, particularly in North America.

GE Vernova announced that it will acquire the remaining fifty percent stake of Prolec GE from Xignux, expanding its Electrification segment and helping to reinforce its ability to serve growing grid demand, particularly in North America.

The acquisition will strengthen GE Vernova’s position in global grid markets and help to accelerate the growth of its Electrification segment, the company’s fastest-growing business. It will expand GE Vernova’s capability to serve both North American and global customers as electricity demand rises, driven by the expansion of data centers and new policies supporting the deployment of grid and electrification equipment.

Prolec GE is a major grid equipment supplier producing transformers across multiple ratings and voltages. It employs approximately 10,000 people across seven manufacturing sites worldwide, including five in the US. Established in 1995 as a joint venture between Xignux and General Electric, this acquisition will consolidate Prolec GE after 30 years of partnership and support GE Vernova’s strategy to further strengthen its Electrification segment through sustained growth and regional presence.

Recent Prolec GE capacity expansion and innovation investments exceed $300 million in the US and Mexico, including a $140 million investment and the creation of 330 new jobs over the next three years in Goldsboro, North Carolina.

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 anticipated to close by mid-2026, subject to customary regulatory approvals. Prolec GE is expected to achieve $3 billion in revenue at approximately 25 percent adjusted EBITDA margin in 2025, with low double-digit revenue growth projected in the following years.

Morgan Stanley & Co. LLC acted as financial advisor to GE Vernova, with Skadden, Arps, Slate, Meagher & Flom LLP providing legal counsel. J.P. Morgan Securities LLC advised Xignux, and Sidley Austin LLP served as its legal counsel.

Non-GAAP Financial Measure

• (a) Forecasts prepared by GE Vernova from data provided by the joint venture under the joint venture’s accounting policies, excluding expected synergies, integration costs, and purchase price accounting adjustments determined through due diligence.

• (b) Current GE Vernova adjusted EBITDA includes equity method income from Prolec GE, which equaled $17 million in 2022, $93 million in 2023, and $105 million in 2024.

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