Vertiv goes public with enterprise value of over $5bn
Vertiv Holdings LLC has announced it will become a publicly-traded company through a merger with GS Acquisition Holdings Corp.
The acquisition was co-sponsored by an affiliate of The Goldman Sachs Group and David M. Cote, CEO of GSAH and former CEO of Honeywell. Cote will serve as Executive Chairman of Vertiv.
Vertiv’s existing management team will continue to be led by the company’s CEO, Rob Johnson. The transaction is expected to close in the first quarter of 2020 and at close, Vertiv’s stock will trade under the ticker symbol NYSE: VRT.
“Platinum Equity, Rob Johnson and his team have done a tremendous job over the last several years positioning Vertiv for long-term success,” said Cote.
“The company is exactly the asset we were looking for, with a great position in a good industry, products differentiated by technology, strong organic and inorganic growth potential, and opportunities for sustained improvements over time.
“Taken together, I am delighted with the near- and long-term prospects for Vertiv and the opportunity this represents for shareowners.”
Vertiv’s portfolio of power, thermal and IT management along with cooling and IT infrastructure solutions and services that extend from the cloud to the edge of the network, generated nearly $4.3bn in revenue in 2018.
The transaction, unanimously approved by both boards of directors, is expected to close in the first quarter of 2020, subject to customary closing conditions.
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At closing, the public company’s name will be changed to Vertiv Holdings Co. Upon closing, Vertiv will have an anticipated pro forma enterprise value of approximately $5.3bn.
“This transaction enables us to accelerate our growth and innovation strategy and broaden our opportunities as we continue to focus on the ever-evolving needs of our customers,” said Vertiv CEO Rob Johnson.
“Our partnership with David, who has a proven track record of driving operational improvements and shareholder value, will further enhance our trajectory as we look to capitalise on our strong foundation in a growing industry.”
Upon completion, it is expected that Platinum Equity will hold approximately 38% of Vertiv Holdings Co and the sponsor (including Cote and affiliates of The Goldman Sachs Group) will own approximately 5% of Vertiv Holdings Co.
In addition to the approximately $705m of cash held in GSAH’s trust account, additional investors have committed to participate in the transaction through a $1.239bn private placement.
“I’m proud of the work our team has done at Vertiv in positioning it where it is today, and I’m very excited about the new partnership with our friend David and long-time partners at Goldman Sachs,” said Tom Gores, Chairman and CEO, Platinum Equity.
“Rob Johnson and the management team have done a tremendous job preparing the company for its next phase of growth.”
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