Lincoln International Represents AREVA T&D in Acquisition of Megatran Electric Ltd.
CHICAGO, November 2, 2009 – Lincoln International LLC, a global mid-market investment bank, today announced that AREVA T&D has acquired Megatran Electric Ltd., the Canada-based power transformer manufacturer. Lincoln International acted as the exclusive financial advisor to AREVA T&D on the transaction. The terms of the transaction were not disclosed.
The acquisition of Megatran, located in Saint-Jean-de-Richelieu, Québec Province, will extend AREVA T&D’s Power Transformer industrial footprint to North America, increasing value for both utilities and industrial customers. In turn, Megatran’s production capacity is expected to increase by 50% leading to the creation of new manufacturing and engineering jobs.
By combining AREVA T&D’s high quality global solutions and decades of experience with Megatran’s local manufacturing capacity, AREVA T&D has also been able secure a long term commercial and service agreement to become Hydro-Québec TransÉnergie’s major supplier of power transformers up to 100 MVA. The acquisition, together with this agreement, will help AREVA T&D become the number one player in Canada for Power Transformers up to 100 MVA.
“AREVA T&D’s customers in Canada and the Northeastern U.S. are looking to us to deliver innovative solutions and shorter delivery lead times for small power transformers,” said Carole Le Couedic, Vice President of AREVA T&D’s Power Transformers Product Line. “This development will allow both AREVA T&D and our North American customers to realize their power transformer project ambitions more efficiently.”
Peter Huber, Megatran’s President added, “Megatran’s mission always has been to provide high quality, reliable power transformers under competitive commercial terms while remaining flexible to our customer’s particular requirements, By joining AREVA T&D, we will capitalize on AREVA T&D’s broad international commercial expertise and together improve our power transformers’ performance, which will step-up production volumes. This is clearly an exciting opportunity for the local Québec economy.”
Nathalie Normandeau, Deputy Premier, Minister of Natural Resources and Wildlife, and Minister responsible for the Northern Plan, also stated “Consolidating AREVA’s presence is good news for Québec because it secures a large portion of Hydro-Québec’s supply of power transformers rated less than 100 MVA. Over the next five years, Hydro-Québec plans to place orders worth over 100million $CAN to equip its transmission grid.”
Lincoln International worked closely with AREVA T&D’s Corporate Business Development team throughout the process, from initial evaluation of the opportunity through confirmatory due diligence and negotiating the final terms of the transaction.
“Our close, long-term relationship with Lincoln International proved highly beneficial throughout the process,” commented Frederic Palanque, Head of Corporate Business Development for AREVA T&D. “Lincoln’s extensive cross-border experience, expert advice and superior communication enabled AREVA T&D to seamlessly complete this highly strategic acquisition.”
Stephane Wattez-Richard, Senior Manager, M&A and Corporate Business Development at Areva T&D, added, “AREVA T&D worked closely with Lincoln’s Paris and U.S. offices. Lincoln’s global capabilities and transaction expertise were critical in helping us close this transaction in a challenging M&A environment. Megatran has an outstanding tradition of success and we are excited to welcome the Company, its customers and its employees to AREVA T&D.”
Following the integration of the Company, Megatran will become a new manufacturing unit within AREVA T&D’s global Power Transformers Product Line. Megatran’s President, Peter Huber will remain a member of the senior management team of the new unit.
The transaction represents another successful assignment completed by Lincoln International’s Global Industrial Group. Having completed over 50 transactions in the past two years, and over 130 since 2005, Lincoln International is one of the most active advisors in the industrial sector.
About AREVA T&D
All over the world, AREVA provides its customers with solutions for carbon-free power generation and electricity transmission. With its knowledge and expertise in these fields, the group has a leading role to play in meeting the world’s energy needs. Ranked first in the global nuclear power industry, AREVA’s unique integrated offering covers every stage of the fuel cycle, reactor design and construc-tion, and related services.
In addition, the group is developing a portfolio of operations in renewable energies. AREVA is also a world leader in electricity transmission and distribu-tion and offers its customers a complete range of solutions for greater grid stability and energy efficiency. Sustainable development is a core component of the group’s industrial strategy. Its 75,000 employees work every day to make AREVA a responsible industrial player that is helping to supply ever cleaner, safer and more economical energy to the greatest number of people.
AREVA’s T&D division is an active player around the globe. It designs, manufactures and supplies a complete range of equipment, systems and services for all stages in the transfer of electricity, from the generator to the large end-user.
About Lincoln International
Lincoln International specializes in merger and acquisition services, debt advisory services, UK pension advisory services and providing fairness opinions and valuations for leading organizations involved in mid-market transactions. With offices in Chicago, Frankfurt, London, Los Angeles, Madrid, New York, Paris, Tokyo and Vienna, and strategic partnerships with China Everbright in China and ICICI Securities, Inc. in India, Lincoln International has strong local knowledge and contacts in the key global economies. The organization provides clients with senior-level attention, in-depth industry expertise and integrated resources. By being focused and independent, Lincoln International serves its clients without conflicts of interest. More information about Lincoln International can be obtained at www.lincolninternational.com.
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