Summary
Vertiv Holdings Co announced on October 13, 2021, that its subsidiary, Vertiv Group Corporation, plans to offer $850 million in Senior Secured Notes due 2028. This offering, conducted via a private placement and exempt from registration under the Securities Act of 1933, is intended to finance a significant portion of the acquisition of E&I Engineering Ireland Limited and Powerbar Gulf LLC. The net proceeds from the notes, along with existing cash, will be used for the acquisition's cash component and related transaction expenses. The acquisition of E&I is strategically positioned to enhance Vertiv's power infrastructure capabilities, offering substantial revenue synergy potential and anticipated cost synergies of approximately $18 million by the end of 2024. This move is expected to broaden Vertiv's product portfolio, expand services, integrate power solutions, strengthen relationships with hyperscale cloud providers, and attract new customers with more flexible and scalable power deployment options.
Key Highlights
- 1Vertiv plans to issue $850 million in Senior Secured Notes due 2028.
- 2The notes offering is a private placement, exempt from registration under the Securities Act.
- 3Proceeds will fund the acquisition of E&I Engineering Ireland Limited and Powerbar Gulf LLC.
- 4The acquisition is expected to create significant revenue synergies and approximately $18 million in cost synergies by the end of 2024.
- 5Pro forma Net Leverage for Vertiv is expected to be 3.5x LTM Adjusted EBITDA as of June 30, 2021, post-acquisition.
- 6E&I generated unaudited net sales of $402 million and Adjusted EBITDA of $102 million for the twelve months ended June 30, 2021.