GE Vernova to buy grid supplier Trench for $9 billion

GE Vernova ↘ 3.38% has agreed to buy Berlin-based high-voltage grid equipment maker Trench Group from investment firm Triton Partners for $9 billion. The deal is meant to grow the company's electrification business as utilities around the world increase spending on power grids, Reuters reported. GE Vernova announced the acquisition on Wednesday, October 28, alongside its third-quarter results. It also raised its 2026 revenue forecast for the third time this year, to $46.5 billion to $47.5 billion from $45.5 billion to $46.5 billion.reuters.com

Deal terms

GE Vernova said the price is 13 times Trench's expected 2028 adjusted EBITDA before synergies. The deal is expected to close in late 2027, subject to regulatory approvals. The company plans to pay for it with equal parts cash and debt, according to Reuters. Trench makes bushings, instrument transformers, coils and reactors. It expects about $1.9 billion in revenue in 2028 and has more than 3,000 employees at 11 manufacturing sites in Europe, North America and Asia. GE Vernova said Trench's products are used in most high-voltage direct current lines built around the world, and that Trench serves more than 800 utilities and hyperscalers.gevernova.com+4

"With a margin-accretive financial profile and approximately $5 billion in backlog and framework agreements, some of which reach into the next decade, this acquisition will deliver both immediate earnings visibility and long-term strategic value," Chief Executive Scott Strazik said. Goldman Sachs The Goldman Sachs Group, Inc. ↘ 3.58% and UBS ↘ 0.91% advised GE Vernova. Bank of America ↘ 2.21% and Morgan Stanley ↘ 3.00% advised Triton.citybiz.co+1

Orders nearly double

Third-quarter orders reached $29 billion, up 96% on an organic basis. Revenue rose 27% to $12.6 billion, and free cash flow was $5.4 billion. Earnings came to $4.81 per share, above analysts' estimate of $4.03. The company also doubled its share buyback authorization to $20 billion. GE Vernova raised its 2026 free cash flow outlook to $16 billion to $17 billion and its adjusted EBITDA margin target to 13.5% to 14.5%. Shares rose in premarket trading after the announcements (MarketWatch News Corp ↘ 1.37%).marketwatch.com+2

Betting on grid demand

Utilities are spending more on transmission to keep up with rising electricity demand from data centers and industrial electrification. GE Vernova says Trench will add parts the grid depends on, more manufacturing capacity and a wider geographic reach. Strazik said the company now expects its backlog to exceed $200 billion in the fourth quarter. "We are investing in our Electrification segment to meet the extraordinary growth opportunity in front of us," he said.gevernova.com+1