$9 Billion Deal Adds Trench Group to GE Vernova’s Grid Business
Key Facts
GE Vernova said on October 28 that it had signed an agreement to acquire Trench Group from investment firm Triton Partners in a deal valued at the equivalent of $9.0 billion. The company said the price represents 13 times projected 2028 adjusted earnings before interest, taxes, depreciation and amortization, before any synergies. The deal is expected to be financed equally with cash and debt. Completion remains targeted for late 2027, subject to regulatory approvals and required consultation with employee representatives. The deal expands GE Vernova’s electrification business by adding an established supplier of grid equipment and complementary products.
GE Vernova said the acquisition directly strengthens its two largest electrification units: grid systems integration and power transmission. The combination brings together existing operations and Trench’s portfolio of high- and medium-voltage equipment, while increasing manufacturing capacity. Trench serves more than 800 utilities and hyperscale data center operators worldwide. Its products include bushings, instrument transformers and reactors. The company has more than 3,000 employees and 11 manufacturing sites across Europe, North America and Asia.
GE Vernova expects Trench to generate revenue of $1.4 billion and adjusted earnings before interest, taxes, depreciation and amortization of $0.5 billion in 2026, at a margin of about 33%. The forecasts rise to revenue of $1.6 billion and adjusted earnings of $0.6 billion in 2027, with a margin of about 35%. For 2028, the company expects revenue of $1.9 billion and adjusted earnings of $0.7 billion, at a margin of about 36%. These are standalone estimates prepared by GE Vernova based on Trench data and its accounting methodology, not guaranteed results. The purchase price and published financial information are expressed as dollar equivalents using an exchange rate of $1.12 per euro, while the deal multiple is based on 2028 estimates before synergies.
The parent company’s figures show the deal comes as GE Vernova is recording strong demand for its equipment and services. Orders reached $29 billion in the third quarter of 2026, up 96% organically, while revenue rose 27% to $12.6 billion and net income reached $1.3 billion. The backlog stood at $197 billion at quarter-end, after increasing by $20 billion from the previous quarter. The company expects the backlog to exceed $200 billion in the fourth quarter. In October, it also raised its share repurchase authorization to $20 billion from $10 billion.
GE Vernova linked growth opportunities for grid equipment to aging infrastructure, demand from data centers, renewable energy expansion and industrial electrification. The company said higher-voltage transmission lines have become more important to the grid, as they can carry up to six times as much electricity per corridor as conventional lines. It added that Trench’s portfolio includes technologies free of SF6 gas and mineral oils, which it said reduce hazardous materials and life-cycle emissions. Trench has about $5 billion in orders and framework agreements, some extending into the next decade, according to GE Vernova’s chief executive. Triton says Trench’s annual revenue has doubled since it became independent in April 2024, surpassing 1 billion euros.
Next steps include starting production of 765-kilovolt equipment at Trench’s new facility in Charlotte, North Carolina, expected in late 2027. That will add manufacturing capacity for grid components in North America, GE Vernova said. In the third quarter, the chief executive said the company was targeting at least 130 gigawatts of contracted gas equipment by the end of 2026. GE Vernova raised its 2026 revenue forecast to a range of $46.5–47.5 billion, from $45.5–46.5 billion, its third increase this year. The company’s shares rose 2.8% to $920.50 in premarket trading on the announcement day, after closing at $895.08 on October 27, compared with $855.12 in the previous session.