E&I Engineering chairman, Philip O'Doherty, has struck a £1.45billion deal for the company to be acquired by US-based digital infrastructure firm, Vertiv.
North West firm E&I Engineering has been bought out by American-based company Vertiv, in a massive £1.45billion deal.
The electrical switchgear manufacturer has plants on the Campsie Industrial Estate in Derry and also in Donegal, employs over 2100 people worldwide. They have entered into an agreement to join Vertiv via acquisition.
With all current roles to be safeguarded in the takeover, E&I says it will be followed by the recruitment of approximately 100 new staff across its three locations in the North West in the next year.
E&I Engineering was founded in 1986 by Derry City football club chairman, Philip O'Doherty and is a major employer not just in Derry but the rest of the north west of Ireland as well. The company trades with more than 32 countries and electrical switchgear and power distribution systems which is installed in facilities like data centres.
An upfront payment of £1.3billion in both money and shares will be made by Vertiv with the rest being paid for in cash based on profit projections for the year 2022.
Headquartered in Ohio, USA, Vertiv employs over 20,000 people across over 130 countries.
The acquisition completes Vertiv’s data centre offering by adding a leading independent provider of switchgear and modular power solutions.
Founder and Chief Executive of E&I Engineering, Philip O’Doherty said: “This transaction brings together two highly complementary businesses and represents a great outcome for E&I’s employees and customers.
“We are excited to join the Vertiv team and continue to grow our business through Vertiv’s global reach, strong channel presence and great customer positioning in critical digital infrastructures.”
Rob Johnson, Vertiv’s Chief Executive Officer, said: "The acquisition of E&I represents a key milestone in Vertiv’s strategy, completing our portfolio of in-building power train offerings for data centers and vital commercial and industrial markets."
"The combination will amplify Vertiv’s growth opportunities and profitability, while enabling Vertiv to deliver differentiated solutions that manage a customer’s entire power infrastructure as an integrated system.
Dave Cote, Vertiv’s Executive Chairman, added: “We look forward to adding E&I’s highly skilled team members to the Vertiv family. Our companies share a strong culture of engineering excellence and innovation and a passion for serving our customers with differentiated products and service."
"While this deal marks the first acquisition by Vertiv since becoming a public company, our team has thoughtfully followed acquisition best practices during the process of identification, valuation, due diligence and integration planning. E&I represents a unique opportunity for Vertiv and it fits well in the Vertiv portfolio. I am excited about the potential of these two great businesses coming together as one."
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