LINCOLN INTERNATIONAL REPRESENTS AREVA T&D IN ANNOUNCED ACQUISITION OF MEGATRAN ELECTRIC LTD
CHICAGO, October 22, 2009 – Lincoln International LLC, a global mid-market investment bank, today announced that AREVA T&D and the shareholders of Megatran Electric Ltd have signed an agreement for AREVA T&D to acquire Megatran, the Canada-based power transformer manufacturer. As a key partner to Areva T&D’s Corporate Business Development team, 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’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 North-Eastern USA 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 has always 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 TransÉnergie's supply of power transformers rated under 100 MVA. Over the next five years, Hydro-Québec TransÉnergie plans to place orders worth over 100million $CAN to equip its transmission grid.”
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 completion of the transaction is expected by early November, 2009.
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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