Alstom sells heat exchange unit for $1.01bn
Paris, April 1, 2014
French turbine and train maker Alstom said on Tuesday it is selling its heat exchange unit for 730 million euros ($1.01 billion) to German private equity group Triton as part of its 2 billion euro asset disposal program.
Alstom said the deal was approved by the board of directors on March 31 and that it would be closed in the first half of the 2014-2015 fiscal year.
The unit makes products and conducts after-sales service for product lines used by boiler companies and utilities such as air preheaters, gas-gas heater units for thermal stations and heat transfer solutions.
The unit employs 1,500 people worldwide with operations in Germany, the United States, Japan, China, India, Brazil, Switzerland, Czech Republic, and is headquartered in Germany.
It is expected to post revenues of 430 million euros in the year ending March 31, with a double-digit operating margin, Alstom added.
Reuters reported on Monday that Triton's bid was seen as having an edge over a rival offer by private equity firm Bain, sources familiar with the process had said.
Private equity firm Astorg was also expected to have submitted a bid last week. The offers valued the unit at about 500-550 million euros ($690-$760 million), the sources had said.-Reuters