NEWS
RELEASE
WEG to acquire Electric Machinery unit of GE’s
Converteam business
Jaraguá do Sul, November 03, 2011 - WEG S.A. (Bovespa: WEGE3 / OTC: WEGZY)
announced today that it has signed an agreement with GE Energy to acquire the
Electric Machinery unit of Converteam. The acquisition is expected to close before the
end of the year and is subject to customary closing conditions and approval by the US
Department of Justice. Financial terms were not disclosed.
WEG’s acquisition of Electric Machinery follows the acquisition of Converteam by GE
on Sep 2nd, 2011. As part of the merger review process prior to the acquisition, GE
agreed with the US Department of Justice to divest the Electric Machinery unit of
Converteam after closure.
Electric Machinery, founded in 1891 and based in Minneapolis, MN, custom designs
and manufactures motors, generators and brushless exciters that serve thousands of
customers worldwide primarily in the oil & gas and power generation industries. The
business also provides a complete range of aftermarket services including installation,
field support, parts, repairs, upgrades, stator rewinds, high-speed balancing and
technical support.
EM has an installed base of more than 5,500 units in operation and is a technological
leader in the development of high value added products, such as 2-pole turbo
generators and slow speed synchronous motors. Revenues in 2011 are estimated to
reach US$ 56 million.
“We are very excited with this acquisition. EM has 100 years of history in large
machines, strong reputation for high quality products and great brand recognition in key
market segments, such as oil & gas and power generation” said Mr. Harry Schmelzer
Jr., WEG’s CEO. “From a global perspective, this acquisition complements WEG’s
offering, with state of art products and technology. In addition, our production platform
in North America now combines the plant in Minneapolis with our plants in Mexico,
allowing us unsurpassed flexibility on providing integrated solutions in the region” said
Mr. Schmelzer.
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NEWS
RELEASE
For further information, please contact:
Investor Relations
Luis Fernando Oliveira
(47) 3276-6973
Twitter: @weg_ir
luisfernando@weg.net
www.weg.net/ri
Corporate Communications
Andressa Cristina Pereira
(47) 3276-4295
Twitter: @weg_wr
andressa@weg.net
www.weg.net/br/Media-Center
Statements about Future Expectations
Some statements contained herein may be projections or statements about future expectations.
Such statements are subject to known and unknown risks that may cause such expectations not
to come true or be substantially different from the expected. Those risks include, among others,
changes in the future demand for the products of the company, changes in the factors that
affect the domestic and international prices of the products, changes in the cost structures,
changes in the markets, changes in the prices practiced by the competitors, exchange rate
variations, changes in the political-economical scenario in Brazil and in emerging and
international markets.
About WEG – Founded in 1961, WEG operates mainly in the sector of capital goods
and is one of the largest world manufacturer of electric-electronic equipment, having
five main lines: Motors, Power, Transmission and Distribution, Automation and
Coatings. With over 21 thousand employees, it had a gross turnover of R$ 5.3 billion in
2010.
In the country, the group has its headquarter and main industrial plants in Jaraguá do
Sul/SC. The other plants are spread over Rio Grande do Sul (Gravataí), Santa
Catarina (Blumenau, Guaramirim, Itajaí and Joaçaba), São Paulo (São Paulo, São
Bernardo do Campo and Hortolândia), Amazonas (Manaus), Espírito Santo (Linhares).
Overseas, WEG has manufacturing units in Argentina, México, Portugal, South Africa,
China and India, besides distribution and trading centers in the USA, Venezuela,
Colombia, Chile, Germany, England, Belgium, France Spain, Italy, Sweden, Australia,
Japan, Singapore, India, Russia and United Arab Emirates.
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