GE Vernova Plans $5.28B Acquisition of Prolec GE to Boost North American Grid Business

GE Vernova announced it will acquire the remaining 50% stake in transformer-maker Prolec GE from its joint venture partner Xignux for approximately $5.28 billion, a deal expected to close by mid-2026 pending regulatory approval. The acquisition, funded equally by cash and debt, aims to strengthen GE Vernova's Electrification segment, which is its fastest-growing division, and enhance its position in North America's rapidly expanding grid equipment market. Prolec GE, established as a joint venture in 1995, projects around $3 billion in revenue for 2025 with a healthy EBITDA margin of about 25%, and has made significant investments exceeding $300 million to expand operations in the U.S. and Mexico. This move will remove previous commercial limitations in North America, streamline customer experience, and allow GE Vernova to leverage its global footprint to improve lead times and capacity. The acquisition supports increased demand for power grid technology driven by factors such as AI growth, cryptocurrency mining, and general power consumption increases. Overall, the deal aligns with GE Vernova's strategic and financial objectives to accelerate growth and better serve customers in the highest-growth segment of its business.