Vertiv agrees $2billion deal to acquire Derry and Donegal based E&I Engineering
US electrical manufacturer Vertiv is to acquire E&I Engineering in a deal worth $2billion.
Vertiv Holdings Co., a global provider of critical digital infrastructure and continuity solutions, announced on Wednesday that it has entered into a definitive agreement to acquire E&I Engineering Ireland Limited and its affiliate, Powerbar Gulf LLC ('E&I') for approximately $1.8 billion in upfront consideration plus the potential for up to $200 million in cash, based on achieving certain 2022 profit milestones.
The upfront consideration consists of $1,170 million in cash and approximately $630 million of Vertiv common stock. The transaction has been unanimously approved by Vertiv’s Board of Directors and is expected to close in the fourth quarter of 2021, subject to customary closing conditions.
“The acquisition of E&I represents a key milestone in Vertiv’s strategy, completing our portfolio of in-building power train offerings for data centers and vital commercial and industrial markets,” said Rob Johnson, Vertiv’s Chief Executive Officer. “The combination will amplify Vertiv’s growth opportunities and profitability, while enabling Vertiv to deliver differentiated solutions that manage a customer’s entire power infrastructure as an integrated system. We look forward to adding E&I’s highly skilled team members to the Vertiv family. Our companies share a strong culture of engineering excellence and innovation and a passion for serving our customers with differentiated products and service.”
“While this deal marks the first acquisition by Vertiv since becoming a public company, our team has thoughtfully followed acquisition best practices during the process of identification, valuation, due diligence and integration planning. E&I represents a unique opportunity for Vertiv and it fits well in the Vertiv portfolio. I am excited about the potential of these two great businesses coming together as one,” said Dave Cote, Vertiv’s Executive Chairman.
“This transaction brings together two highly complementary businesses and represents a great outcome for E&I’s employees and customers,” said Philip O’Doherty, founder and Chief Executive Officer of E&I. “We are excited to join the Vertiv team and to continue to grow our business through Vertiv’s global reach, strong channel presence and great customer positioning in critical digital infrastructures.”
E&I was founded in 1986 by Philip O’Doherty.
It makes electrical switchgear and power distribution systems and provides integrated power solution designs.
It has annual sales of approximately $460 million (2021E) and employs 2,100 people at its plants at Burnfoot and Campsie as well as its operations in South Carolina in the United States and Ras-al Khaimah in the United Arab Emirates.