Triton in €730m power deal

The firm made the investment from its fourth buyout fund which closed on €3.5bn last year.

Triton Partners, a buyout firm in the Nordic region, has agreed to acquire a division of Alstom, a French manufacturer of trains and power plant equipment, for €730 million, according to a statement.

The components business that Triton will buy is part of the steam segment within Alstom’s Thermal Power division. It supplies air preheaters and gas heaters for thermal power plants, and heat transfer solutions for a variety of petrochemical and industrial processes.

The division, which is headquartered in Mannheim, Germany, employs over 1,500 people worldwide and has operations in Germany, the US, Japan, China, India, Brazil, Switzerland and the Czech Republic.

For the fiscal year ending 31 March 2014, the business is expected to generate revenues of more than €430 million, according to the statement. Alstom, which contributes up to 20 percent of the sales, will remain a major customer, according to the statement.

The transaction will be made from Triton’s fund IV, according to a source familiar with the matter. Triton declined to comment.

That vehicle closed on €3.5 billion last May, above its original €2.4 billion target, PEI reported at the time. Triton targets mid-market buyout and special situation investments in the German-speaking and Nordic region. It typically backs businesses in the industrials, business services and consumer sectors.

Last month, Triton agreed to buy Cubility, a Norwegian oil services company, from Energy Ventures for an undisclosed sum, while in February, it sold Puukeskus, a distributor of wood-based building materials in Finland and the Baltic region to a strategic buyer.