Vertiv to buy E&I Engineering, Powerbar Gulf for $1.8bn

Vertiv, a global provider of critical digital infrastructure, has reached an agreement to acquire E&I Engineering Ireland and its UAE-based affiliate, Powerbar Gulf, for $1.8 billion in upfront consideration plus the potential for $200 million in cash.

Vertiv Holdings Company, a global provider of critical digital infrastructure and continuity solutions, said it has, through its subsidiaries, entered into a definitive agreement to acquire E&I Engineering Ireland and its UAE-based affiliate, Powerbar Gulf, for $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 $1.17 billion in cash and approximately $630 million of Vertiv common stock.
Headquartered in Ohio (US), Vertiv solves the most important challenges facing today’s data centres, communication networks and commercial and industrial facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the cloud to the edge of the network.
Announcing the acquisition deal, Vertiv said the transaction has been unanimously approved by its board of directors and it is expected to be fully completed in the fourth quarter, subject to customary closing conditions.
The acquisition of E&I and the Powerbar Gulf - a leading manufacturer of busbar trunking systems in the GCC with its base in Ras Al Khaimah - represents a key milestone in the group's strategy, completing its portfolio of in-building power train offerings for data centres and vital commercial and industrial markets.
Founded in 1986 by Philip O’Doherty, E&I is a leading independent provider of electrical switchgear and power distribution systems, pioneering unique in-house integrated power solution designs and technology tailored to individual client project needs. 
With annual sales of $460 million (2021E) and 2,100 employees, E&I has a long heritage in the power distribution market and deep relationships with a blue-chip customer base in more than 30 countries. 
E&I’s products represent a critical system of the data centre power infrastructure and compete in an addressable market of about $7 billion, which is expected to grow 5% annually through 2025.
"This transaction brings together two highly complementary businesses and represents a great outcome for E&I’s employees and customers," remarked O’Doherty.
"We are excited to join the Vertiv team and to continue to grow our business through its global reach, strong channel presence and great customer positioning in critical digital infrastructures," he added.
On the deal, Vertiv CEO Rob Johnson said: "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," noted Johnson. 
Vertiv’s Executive Chairman Dave Cote said: "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," he added.-TradeArabia News Service