Former Honeywell CEO in talks to purchase Vertiv at $5 billion buyout deal


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Former Honeywell CEO in talks to purchase Vertiv at $5 billion buyout deal

GS Acquisition Holdings Corp., a company led by former Honeywell International Inc. chief executive David Cote alongside backed by the leading US lender Goldman Sachs Group Inc., had been in an advanced-stage talk to acquire a Columbus, Ohio-based backup power equipment firm Vertiv for a total of $5 billion including debts, at least three people familiar with the subject-matter had unveiled on Monday, the 2nd of December 2019.

Aside from that, former Honeywell Chief, Cote’s firm, the GS Acquisition Holdings Corp., has been a special purpose acquisition company (SPAC), a type of investment fund that let stock market investors to invest in private equity type transactions such as leveraged buyouts.

More importantly, Cote’s firm had raised a sum of $690 million in an IPO (Initial Public Offering) last year in a bid to purchase a company, nonetheless Cote’s firm did not tell the investors in advance last year what that company could be.

However, sources had also added on Monday (December 2nd) on condition of anonymity that the US-based investment fund GS acquisition might use that money raised during its IPO last year alongside debts to take over the backup power equipment company, Vertiv from a private equity firm, Platinum equity.

Nonetheless, another source directly briefed over the issue was quotes saying on Monday (December 2nd) on condition of anonymity that the talks over a final acquisition bid was ongoing and there was no certainty a deal could be finalized.