First Reserve Announces Agreement To Acquire A Subset Of The International Transmission And Distribution Division Of Crompton Greaves Limited

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May 09, 2016, 06:36 ET

GREENWICH, Conn., HOUSTON, and LONDON, May 9, 2016 /PRNewswire/ -- First Reserve, a leading global private equity and infrastructure investment firm exclusively focused on energy, today announced the signing of an investment to acquire a subset of the international power transmission and distribution division of Crompton Greaves Limited, a global leader in the management and application of electrical energy. The acquired division, which is expected to be rebranded as Pauwels, manufactures transformers and switchgears, as well as provides systems across the transmission and distribution space.

First Reserve has a long history of investing across the broad power equipment manufacturing and services sector. The Firm believes the sector represents an attractive opportunity for investment underlined by consistent growth and replacement of aging infrastructure. Pauwels is considered one of the pioneers in the global power transformer industry, with operations spanning Europe, the U.S., Southeast Asia and the Middle East accounting for approximately €500 million in annual sales.

First Reserve is pleased to partner in the investment with Pierre Bastid, former Chairman and CEO of Converteam, one of the largest power conversion equipment companies in the world which was eventually acquired by General Electric in a $3.2 billion transaction. Mr. Bastid and his team developed Converteam following the acquisition of the power conversion unit of Alstom SA and grew it into a global franchise and technology leader in the electrical equipment sector.

Francesco Giuliani, Managing Director of First Reserve, commented, "Pauwels represents an opportunity to invest in an energy subsector that is not directly exposed to the volatility of commodity pricing, providing what we believe is strong diversification for the First Reserve portfolio. Under the leadership of Pierre Bastid and his team, we expect Pauwels to leverage supporting macro fundamentals and the company's strong reputation to accelerate the growth of its global footprint."

Pierre Bastid added, "The investment in Pauwels represents the first step towards building a worldwide player in the power equipment sector. With high fragmentation in the industry, we believe there is great opportunity for consolidation, growing market share on a global scale. I speak for the rest of the team in saying we are excited to partner with First Reserve, an established energy investor, and look forward to strategically advancing the company together."

Alex Krueger, Co-CEO and President of First Reserve, added, "As thematic investors focused solely on the energy space, First Reserve has built a global franchise investing in what we believe are attractive, diversified opportunities throughout the energy value chain. We continue to pursue high-quality transactions around the globe, backing industry-leading management teams to create value. We are honored to have established this partnership with Pierre Bastid and his team to seek to deliver returns on behalf of our investors."

About First Reserve

First Reserve is one of the largest global private equity and infrastructure investment firm exclusively focused on energy. With over 30 years of industry insight, investment expertise and operational excellence, the Firm has cultivated an enduring network of global relationships and raised approximately USD $31 billion of aggregate capital since inception. Putting these to work, First Reserve has completed more than 550 transactions (including platform investments and add-on acquisitions), creating several notable energy companies throughout the Firm's history. Its portfolio companies operate on six continents, spanning the energy spectrum from upstream oil and gas to midstream and downstream, including resources, equipment and services and infrastructure. Visit www.firstreserve.com for more information.

For First Reserve media inquiries, please contact:

Jonathan Keehner / Julie Oakes
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449

SOURCE First Reserve