Virginia Transformer explores sale valued at over $6 billion

Virginia Transformer is exploring a potential sale that could value the company at more than $6 billion, according to Bloomberg sources. The company, led by CEO Prabhat K Jain, is one of North America’s largest US-owned power transformer manufacturers.

The company is working with an adviser to assess buyer interest, although there is no guarantee that a sale will occur. Founded in the 1970s, Virginia Transformer manufactures essential products for sectors such as steel mills and data centres.

Rising electricity demand, fueled by the expansion of data centres and factories, is expected to increase by nearly 16% in the US over the next five years, according to a report by Grid Strategies. This demand, along with the need to modernise ageing electrical infrastructure, positions companies like Virginia Transformer as potential acquisition targets.

The industry is facing challenges in meeting the demand for grid equipment, with major players like GE Vernova, HD Hyundai Electric, and Schneider Electric also competing in the market. In 2018, the benchmark transaction in the sector was Hitachi’s $11 billion acquisition of ABB’s power grid division.

Despite strong demand, deal volume in the sector dropped by 3% to $516 billion in 2024.