Done deal: Schneider Electric buys American Power Conversion for $6.1 billion
Palatine, IL — Schneider Electric recently completed its $6.1 billion acquisition of American Power Conversion (APC), and, consistent with the European Commission's requirements, plans to divest its MGE UPS Systems operations in systems below 10 kVA. With estimated sales of around $196.8 million, the divestment represents 6% of the combined operations of APC and MGE UPS Systems in critical power.
Jean-Pascal Tricoire, president and CEO of Schneider Electric, says, "APC and MGE will generate value for our customers through a large choice of tailored solutions, a global services network and expanded technical expertise. We are now ready to greatly strengthen Schneider Electric in the fast-growing segment of critical power and cooling services and we are extremely confident in the combined talents of the APC and MGE people to achieve this." Rob Johnson, former president and CEO of APC, says: "The APC team is excited to join with Schneider Electric and MGE UPS Systems." Claude Graff, president of MGE UPS Systems says APC and MGE are a powerful combination and would offer customers a large choice of solutions and services.
Under the terms of the acquisition, each share of APC common stock is converted to the right to receive $31. The total amount to be paid in cash to APC shareholders represents approximately $6.1 billion in exchange for all outstanding shares of APC. Trading in APC's common stock on the Nasdaq Global Select Market ended on Feb. 14.
Founded in 1981, American Power Conversion, was based in West Kingston, RI, with 2005 sales of $2 billion. MGE UPS Systems, a subsidiary of Schneider Electric, serves in more than 100 countries. Schneider Electric says it is "the world's power and control specialist," with brands such as Merlin Gerin, Square D, and Telemecanique, and 105,000 employees and operations in 190 countries, Schneider Electric generated sales of $18 billion in 2006 through 15,000 distributor outlets.
—Control Engineering Daily News Desk
Edited by Mark T. Hoske , editor in chief