GE Vernova to Fully Acquire Prolec GE for $5.28 Billion

GE Vernova Inc. has announced plans to acquire the remaining 50% stake in Prolec GE from joint venture partner Xignux for $5.28 billion. This acquisition will grant GE Vernova full ownership of Prolec GE, a leading transformer manufacturer established in 1995. The transaction is expected to close by mid-2026, pending regulatory approvals, and will be financed equally through cash and debt.

Prolec GE, headquartered in Apodaca, Nuevo León, Mexico, operates seven manufacturing sites globally, including five in the United States, and employs approximately 10,000 people. The company produces a comprehensive line of transformer products for the generation, transmission, and distribution of electric power. In 2025, Prolec GE anticipates generating $3 billion in revenue with an adjusted EBITDA margin of approximately 25%.

The acquisition aims to strengthen GE Vernova's presence in North America amid increasing demand for grid equipment driven by the growth of artificial intelligence, cryptocurrency mining, and rising energy needs. Scott Strazik, CEO of GE Vernova, stated, "This acquisition aligns with our strategic and financial objectives and is also good for our customers by strengthening our presence in North America, where demand for grid equipment is growing rapidly."

Prolec GE has recently invested over $300 million in capacity expansion and innovation in the U.S. and Mexico. This includes a $140 million investment in Goldsboro, North Carolina, expected to create 330 new jobs over the next three years.

Morgan Stanley & Co. LLC acted as financial advisor to GE Vernova, while J.P. Morgan Securities LLC advised Xignux on the transaction. Legal counsel was provided by Skadden, Arps, Slate, Meagher & Flom LLP for GE Vernova and Sidley Austin LLP for Xignux.

The acquisition is expected to have significant social and economic implications, particularly in North America. The expansion of Prolec GE's operations, including the creation of 330 new jobs in North Carolina, will contribute to local economies and support the growing demand for grid infrastructure. Additionally, the consolidation of Prolec GE under GE Vernova's ownership may lead to increased investment in research and development, fostering innovation in the energy sector.

This acquisition marks a significant milestone in the longstanding partnership between GE and Xignux. The joint venture, established in 1995, has been instrumental in supplying transformers and grid equipment across the Americas. The full acquisition by GE Vernova reflects the company's strategic focus on strengthening its position in the rapidly evolving energy market.

GE Vernova's full acquisition of Prolec GE represents a strategic effort to enhance its capabilities in the North American energy market. By consolidating ownership, GE Vernova aims to meet the increasing demand for grid equipment driven by technological advancements and rising energy consumption.