WEG S.A. (Bovespa: WEGE3 / OTC: WEGZY) announced today the acquisition of CG Power USA Inc. (“CG”), located in Washington, Missouri, USA. The transaction is restricted to the Power and Distribution Transformers business and its conclusion will only take place after compliance with certain precedent conditions that are usual in this type of transaction.
The Company, previously controlled by the Indian Group Crompton Greaves, is specialized in the manufacture, assembly, supervision and commissioning services of Power and Distribution Transformers up to 60 MVA - 161 kV. The three manufacturing plants occupy an area of 26,300 square meters and have 452 employees. In fiscal year 2016/17, Company's net revenue was US $ 128 million.
According to Mr. Carlos Prinz, WEG T&D Managing Director, the acquisition, in addition to complementing the WEG product line, will increase the Company's market share in North America. "CG has a relevant market share in transformers for wind sites and solar farms in the USA. This acquisition, combined with our production platforms in Brazil, Colombia, Mexico and South Africa, will allow us to rapidly advance in the transmission and distribution business internationalization", says Mr. Prinz.