Mentioned:
GE Vernova is buying one out their own suppliers. And they’re putting up billions of dollars to do it.
What’s happening:
- GE Vernova (NYSE: GEV) has entered into a definitive agreement to buy high-voltage grid equipment maker Trench Group for roughly $9B USD
Why it matters:
- Trench Group manufactures high-voltage grid equipment including bushing, instrument transformers and coils and is one of the largest high-voltage grid component producers globally
Going deeper:
- GE Vernova will fund the purchase of Trench Group through a mixture of cash and debt financing
- Trench Group was incubated inside of Siemens Energy prior to being sold to European private equity company Triton Partners
- Trench Group is currently a supplier of transformer bushings and other grid components to GE Vernova
