MTU Aero Engines sells Vericor Power Systems
By Roberta Prandi12 August 2021
MTU Aero Engines AG sold Vericor Power Systems, the marine and industrial gas turbine OEM based in Alpharetta, Georgia, USA. The company is being acquired by US private equity company CSL Capital Management.
“Vericor sees growth opportunities in the oil and gas sector,” said Reiner Winkler, CEO of MTU Aero Engines AG. “We are pleased that our transaction partner CSL can offer Vericor good opportunities for development. By divesting Vericor, we are concentrating our OEM activities on our core business, aircraft engines, and driving forward technologies for sustainable and ultimately emissions-free aviation.”
No financial details were provided. The divestment will have no impact on MTU’s revenue and earnings forecast for the 2021 fiscal year, the company said.
CSL Capital is an investment firm focused on the energy services, energy equipment and energy technology sectors. Its global portfolio of companies includes venture, start-ups and later-stage investments. Since its inception in 2008, CSL Capital Management has raised in excess of US$1.9 billion in equity capital.
“We are pleased to partner with Vericor and to utilize its unique low-emission gas turbines to provide customer solutions for the military, marine, energy and power generation, and other industries in an efficient and environmentally responsible fashion,” said CSL Founding Partner Charlie Leykum.
MTU established Vericor Power Systems in 1999 as a joint venture with Allied Signal – now Honeywell. Since 2002, this IGT specialist has been a wholly owned subsidiary of MTU Aero Engines. Vericor has around 50 employees.
MTU is retaining the IGT maintenance business for the LM series of industrial gas turbines, which is operated by MTU Maintenance Berlin-Brandenburg