Atlanta-based GE Energy signed a definitive agreement to acquire BHA Group Holdings, a leading provider of air quality control products and services, in an all cash transaction for $38 per share or approximately $260 million. Upon consummation of the transaction, BHA will become a wholly owned subsidiary of GE.
Based in Kansas City, Mo., BHA is a NASDAQ quoted company with operations in 11 countries, supplying parts, services and engineered upgrades to reduce particulate matter emissions for a broad range of power generation and industrial applications, as well as ePTFE membrane products for use in a variety of industrial and consumer products.
Following the closing of the acquisition, BHA will be integrated with GE Energy's portfolio of environmental services.
GE Energy’s environmental services business is on track to achieve more than 50-percent organic growth in 2004 and is well positioned to achieve double-digit growth over the next three years, the company said.
The growth is largely attributable to an increased focus on offerings designed to improve air quality while optimizing total plant performance. The acquisition will add complementary particulate matter control capabilities to GE Energy’s existing combustion control and emissions monitoring solutions, producing a more complete solution for the global customer base of both companies. The acquisition also adds ePTFE membrane technology to the GE portfolio, with multiple applications for this technology anticipated across GE’s businesses. BHA is the latest of several acquisitions and product announcements designed to broaden GE Energy’s offerings in renewable and cleaner energy production.
“Adding the capabilities of BHA will better enable GE Energy to address our customers’ growing need to reduce particulate matter emissions,” said John Rice, president and CEO of GE Energy. “BHA's focus on the development of advanced technology parts and services that help improve system performance is a perfect complement to GE Energy's strategy of achieving the latest emission control standards while simultaneously delivering total plant performance improvements."
"In GE Energy, we are joining a company with one of the world's largest installed bases of power generation equipment, relationships with leading utility companies, and advanced environmental technologies," said James Lund, president and CEO of BHA. "This union will create an expanded environmental solution for our customers, and produce multiple application opportunities for our emission control and ePTFE membrane technology across the GE portfolio."
The acquisition is subject to customary closing conditions including regulatory approvals and BHA stockholder approval. The acquisition is expected to close in late summer.
Allen & Company llc and Robert W. Baird & Co. Inc. acted as financial advisors to BHA.
Atlanta-based GE Energy Rentals is No. 17 on the RER 100.
