Co Donegal company E+I Engineering acquired in $2bn deal

Co Donegal-based E&I Engineering is to be acquired by US company Vertiv in a deal valued at $2 billion (€1.7bn).

E+I, which provides electrical switchgear and power distribution systems used in data centres, was founded in 1986. It employs 2,100 people and has annual revenues of $460 million.

The company intends to take on approximately 100 new staff across its three locations in the northwest in the next year following the deal.

Headquartered in Burnfoot, E+I also has facilities in United Arab Emirates and in South Carolina in the US, where it recently completed a $13 million expansion of its plant in a move that led to the creation of 200 jobs.

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E&I products are critical to the data centre power infrastructure sector, and compete in a market worth about $7 billion, which is expected to grow 5 per cent annually through 2025.

Vertiv, a US company which went public in New York last year, said it is to acquire E&I and its affiliate Powerbar Gulf for approximately $1.8 billion in upfront consideration plus the potential for up to $200 million in cash based on achieving certain profit milestones. The upfront consideration consists of $1.17 billion in cash and approximately $630 million of Vertiv common stock.

“This transaction brings together two highly complementary businesses, and represents a great outcome for E&I’s employees and customers,” said Philip O’Doherty, founder and chief executive of E&I.

“We are excited to join the Vertiv team and to continue to grow our business through Vertiv’s global reach, strong channel presence and great customer positioning in critical digital infrastructures.”

Mr O’Doherty, who is also chairman of Derry City football club, looks to be one of the main beneficiaries of the transaction given his large stake in the company he founded.

Other significant shareholders are senior executives Damien McAuley, Cathal McLaughlin and Paul Connolly. All four are also directors of Powerbar, a Cyprus-headquartered company that had a big stake in the company, according to the most recently available company accounts.

Vertiv, which was founded in 1940 in Columbus, Ohio, employs some 20,000 people and does business in more than 130 countries. It is a provider of equipment and services for data centres.

"The acquisition of E&I represents a key milestone in Vertiv's strategy, completing our portfolio of in-building power train offerings for data centres and vital commercial and industrial markets," said chief executive Rob Johnston.