Siemens acquiring Robicon for $197 million
New Kensington, PA—Robicon Corp. has agreed to sell its assets to Siemens Energy & Automation Inc. for approximately $197.5 million in cash.
New Kensington, PA— Robicon Corp. has agreed to sell its assets to Siemens Energy & Automation Inc. for approximately $197.5 million in cash. These assets include Robicon’s stock in its subsidiaries in Shanghai, China; High Wycombe, U.K.; Sao Paolo, Brazil; and Edmonton, Alberta, Canada. Robicon manufactures industrial power conversion and control devices and systems.
Stephen Gray, Robicon's Chapter 11 trustee, says he designated Siemens as the front-running bidder after marketing Robicon to other potential buyers. He reports that Siemens gives the most available value to Robicon’s creditors, and offers security and stability to its employees, customers, suppliers, and channel partners.
Proceeds from the sale should enable High Voltage Engineering Corp. and its domestic affiliates, including Robicon and Charles Evans Associates, to pay in full the pre-petition claims of its secured and unsecured creditors.
Siemens says buying Robicon will allow it to expand its portfolio, and broaden its presence in the medium-voltage drives field. Robicon reportedly gives Siemens a complementary product, technology, and a channel portfolio with long-term growth opportunities for both firms.
Siemens adds that Robicon will continue operating in New Kensington, and that all of its employees and business relationships will remain intact.
The purchase agreement has been filed with the U.S. Bankruptcy Court for Massachusetts, Eastern Division, along with a motion seeking establishment of sale procedures for an auction that allows other qualified bidders to submit higher or otherwise better offers for all or part of the company's assets. This is required under Section 363 of the Bankruptcy Code. The agreement also is subject to bankruptcy court approval of Siemens as a 'stalking horse' bidder in a competitive auction process; certain regulatory approvals, including clearance under antitrust rules; and other customary closing conditions.
Control Engineering Daily News Desk
Jim Montague, news editor