Triton acquires the auxiliary components business of Alstom’s Thermal Power division
Paris (France)/Mannheim (Germany), 1 April 2014 - Funds advised by Triton ("Triton") have entered into an agreement to acquire the auxiliary components business of Alstom's Thermal Power division for an Enterprise Value of around €730 million. The transaction was approved by the Board of Directors of Alstom on 31 March. The transaction is expected to close before the end of 1st half of fiscal year 2014/15.
The auxiliary components business is part of the steam segment within Alstom's Thermal Power division and is active both in the new equipment market and aftermarket services across three product lines: air preheaters and gas-gas heaters for thermal power plants, heat transfer solutions for a variety of petrochemical and industrial processes, and grinding mills for diversified industrial applications. Headquartered in Mannheim, Germany, the company employs over 1,500 people worldwide, with operations in Germany, the USA, Japan, China, India, Brazil, Switzerland and the Czech Republic. For the fiscal year ending 31 March, 2014, the business is expected to generate revenues in excess of €430 million, with strong growth prospects for the years ahead.
"Triton looks forward to working with the management team and employees to strengthen and grow the company," says Peder Prahl, Director of the General Partner of the Triton funds.
"This transaction highlights the strength and value of Alstom portfolio of activities, and illustrates the group's ability to deliver on its strategy of selective, value-enhancing disposals", said Nicolas Tissot, Chief Financial Officer of Alstom.
The development of the business will rely on a mutually beneficial relationship between Triton and Alstom. Philippe Cochet, President of Thermal Power added: "This sale will ensure a solid future for employees and a sustainable quality of service for customers. Alstom, which already contributed up to 20% of the sales, will remain a major customer."
The Triton funds invest in and support the positive development of medium-sized businesses headquartered in Northern Europe - with a focus on Germany, Switzerland, Austria and the four Nordic countries: Denmark, Finland, Norway and Sweden. Within this European region, Triton focuses on businesses in the Industrial, Business Services, and Consumer/Health sectors.
Founded in 1997, Triton seeks to contribute to the building of better businesses for the longer term. Triton and its executives wish to be agents of positive change towards sustainable operational improvements and growth. The 26 companies currently in Triton's portfolio have combined sales of approximately 13 billion Euro and over 55,000 employees.
The Triton funds are advised by dedicated teams of investment professionals based in Germany, Sweden, United Kingdom, Luxembourg and Jersey.
For further information: www.triton-partners.com