Alstom to sell heat exchange unit to German PE firm Triton for $1.01 bn
01 April 2014
Alstom SA today struck a deal to sell its heat exchange unit to German private equity firm Triton for €730 million ($1.01 billion), as part of the French power equipment giant's earlier plan of divesting assets worth €2 billion.
The auxiliary components business being sold is part of the steam segment within Alstom's Thermal Power division and is active both in the new equipment market and aftermarket services.
Headquartered in Germany, the heat exchange unit employs more than 1,500 people worldwide, and has operations in Germany, the US, Japan, China, India, Brazil, Switzerland and the Czech Republic.
For the fiscal year ending 31 March, the business is expected to generate revenues in excess of €430 million.
''This transaction highlights the strength and value of Alstom portfolio of activities, and illustrates the group's ability to deliver on its strategy of selective, value-enhancing disposals'', said Nicolas Tissot, CFO of Alstom.
''Triton looks forward to working with the management team and employees to strengthen and grow the company," said Peder Prahl, director of the general partner of Triton.
The development of the business will rely on a mutually beneficial relationship between Triton and Alstom. Philippe Cochet, president of Thermal Power, said, ''This sale will ensure a solid future for employees and a sustainable quality of service for customers. Alstom, which already contributed up to 20 per cent of the sales, will remain a major customer.''