How GE Vernova’s Prolec Deal Will Help Scale Electrification

GE Vernova has completed the acquisition of the remaining 50% stake in Prolec GE from Xignux, consolidating a 30-year joint venture into a single leadership structure. 

The US$5.275bn transaction was funded with an equal mix of cash and debt and closed following all required regulatory approvals.

As an electric industry leader, Prolec GE brings approximately 10,000 employees to GE Vernova across seven manufacturing sites in the Americas, with five in the US, and a portfolio spanning transformers, components and services. 

The business will go to market as GE Vernova within the company’s electrification segment.

Scott Strazik, CEO of GE Vernova, says of the move: “We’re excited to reach this important milestone with our first sizable acquisition as a standalone public company and welcome the Prolec GE team into GE Vernova. 

“We are building on a decades-long partnership and combining the strengths of our two companies to offer customers a broader portfolio and operate at a higher capacity to fulfill expectations, especially in North America where grid demand is strong. 

“As we continue to focus on our mission to electrify to thrive and decarbonise the world, this acquisition will play a critical role in driving our sustained growth in electrification.”

Smooth integration as a leadership priority

For a newly public company, the Prolec GE deal is a deliberate test of leadership discipline.

According to GE Vernova, there is a need for coordinated execution across the company’s electrification function – across its factories, services and innovation functions. 

Phillippe Piron, CEO of GE Vernova Electrification, says: “Our customers are asking for more capacity from the grid.

"With Prolec GE now fully part of GE Vernova, we are better equipped to respond to that demand and better serve our installed base, utilising our combined manufacturing footprint for transformers and a strong pipeline of innovation to serve the electrification needs of the world. 

“Our priority from day one is a smooth integration, where customers continue to receive the service and quality they expect, supported by the scale of the combined Prolec GE and GE Vernova teams.”

Bringing Prolex GE fully into GE Vernova is expected to drive additional profitable growth, according to GE Vernova.

With grid investment accelerating in North America the company is anticipating a smoother project delivery interface for customers under its new leadership model. 

Sharing the news on LinkedIn, Scott says: "We’re executing from a position of strength, investing where demand is growing fastest, and scaling the capabilities needed to lead this next phase of global electrification."

Culture and continuity

GE Vernova will retain Prolec GE’s leadership, with Ricardo Suarez continuing as CEO of Prolec GE and reporting to Philippe – helping the organisation maintain operating practices in a time of significant change. 

Ricardo says: “Joining GE Vernova as a fully integrated business is a natural next step in our journey after years of partnership. 

“We are proud of our strong culture and the legacy we’ve built, and as part of the one GE Vernova family, we will adapt and embrace the GE Vernova Way while maintaining the local culture, heritage and identity that made us who we are today. 

“I am excited for the opportunities our employees will have to learn and grow further as part of a global industry leader, the continued investment in our sites, and an even stronger capability to serve our customers across North America.”