Acquisitions in industrial control and automation
Schneider Electric has taken a new step in its strategy to expand in the Industry Market by acquiring Crouzet Automatismes and Positec. This move will broaden Schneider Electric’s offering for OEMs and strengthen its position with industrial customers.
As part of Schneider Electric’s growth strategy, these two acquisitions will enhance the Company’s core lineup. The goal is to offer more solutions to the same customers, while concentrating on the same type of technology.
Crouzet Automatismes: a leader in electronic control and small automation devices
The acquisition plan, announced last August 29 by Schneider Electric and Thomson-CSF, has been finalized and presented to employee representatives. It must now be approved by the concerned anti-trust authorities.
Crouzet Automatismes serves the OEM market through four core businesses: electronic controls, micro switches, micro motors and pneumatic logic modules. Sales for 2000 are expected to reach EUR 180 million, of which 30% from France, 50% from the rest of Europe and 16% from the United States. The company has 1,860 employees at seven production and development sites located in France, the US, Spain, Morocco and Mexico.
Positec: a European leader in motion control
Schneider Electric has signed an agreement with Switzerland’s SIG to acquire all the outstanding shares in Positec. This transaction must also be approved by anti-trust authorities.
Positec primarily makes products to control the position and speed of the axes that determine a machine’s kinematic performance. Its main customer base is OEMs.
The motion control market covered by Positec is worth an estimated EUR 4 billion and is growing by 7.5% a year. The company has 800 employees and anticipates sales for 2000 of EUR 110 million (46% from Germany, 19% from Italy and 15% from Switzerland).
These acquisitions fit in with Schneider Electric’s growth strategy, following the successful reorganization of its Automation business and expansion in speed drives with Toshiba.
The new businesses should benefit from sustained growth thanks to their synergy with the rest of Schneider Electric. Together, they will slightly reduce earnings per share by 0.6% in 2001 and increase earnings per share by 0.3% in 2002.