GE Vernova Inc. (NYSE: GEV) announced it will acquire the remaining 50% stake in Prolec GE from joint venture partner Xignux for $5.275 billion. The transaction will give GE Vernova full ownership of the grid equipment supplier, which was established as a joint venture in 1995.

Prolec GE produces transformers across various ratings and voltages through seven manufacturing sites globally, including five in the United States. The company employs approximately 10,000 people worldwide and expects $3 billion in revenue with a 25% adjusted EBITDA margin in 2025, according to the press release.

The acquisition price will be funded equally through cash and debt, with approximately $2.64 billion in each category. The transaction is expected to close by mid-2026, subject to regulatory approvals.

"This acquisition aligns with our strategic and financial objectives and is also good for our customers by strengthening our presence in North America where demand for grid equipment is growing rapidly," said GE Vernova CEO Scott Strazik.

Xignux CEO Juan Ignacio Garza Herrera said the transaction provides opportunity for the business to continue growth under a global leader's capabilities.

Prolec GE has invested more than $300 million in recent capacity expansion and innovation in the U.S. and Mexico, including a $140 million investment in Goldsboro, North Carolina, creating 330 new jobs over three years.

The company projects revenue growth to $3.4 billion in 2026 and $4.2 billion in 2028, with adjusted EBITDA margins expected to reach approximately 27% by 2028.

Morgan Stanley served as financial advisor to GE Vernova, while J.P. Morgan Securities advised Xignux on the transaction.