Business

North west-based E&I Engineering Group acquired in $2 billion US deal

E&I Engineering founder and chairman of Derry City FC, Philip O’Doherty. Picture by Lorcan Doherty.
E&I Engineering founder and chairman of Derry City FC, Philip O’Doherty. Picture by Lorcan Doherty. E&I Engineering founder and chairman of Derry City FC, Philip O’Doherty. Picture by Lorcan Doherty.

A NORTH west engineering group headed by Derry City native Philip O’Doherty has been acquired in a deal worth around $2 billion (£1.45bn).

Electrical switchgear manufacturer E&I Engineering, which has plants across Derry and Donegal, has been bought by US-based infrastructure solutions and services group Vertiv.

E&I, which employs around 2,100 people, said all current roles will be safeguarded following the takeover, with 100 new staff to be recruited across three sites in the north west in the next 12 months.

Headquartered in Columbus, Ohio, Vertiv will pay an initial $1.8bn up front, rising to $2bn based on certain milestones being achieved in 2022.

Around $1.17bn will be handed over in cash, with around $630m in stock also being exchanged.

It’s the US group’s first acquisition since becoming a publicly traded company in February 2020.

Along with E&I Engineering’s Irish and US business, the deal will see Vertiv acquire UAE-based Powerbar Gulf LLC, which is part of Philip O’Doherty’s group.

Set up by Mr O'Doherty in Burnfoot in 1986, E&I has grown into the largest electrical switchgear manufacturer in the UK and Ireland.

Its estimated E&I’s annual sales for 2021 will come in at around $640m (£465m).

Commenting on the deal, Philip O’Doherty, who is also the chairman of League of Ireland club Derry City, said: “This transaction brings together two highly complementary businesses and represents a great outcome for E&I’s employees and customers.

“We are excited to join the Vertiv team and continue to grow our business through Vertiv’s global reach, strong channel presence and great customer positioning in critical digital infrastructures.”

Vertiv’s chief executive, Rob Johnson, said the takeover marks a key milestone in the New York Stock Exchange-listed company.

He said it will complete the US group’s portfolio of in-building power train offerings for data centres and vital commercial and industrial markets.

“We look forward to adding E&I’s highly skilled team members to the Vertiv family.

“Our companies share a strong culture of engineering excellence and innovation and a passion for serving our customers with differentiated products and service.”