Schneider Electric India, the subsidiary of French energy major Schneider Electric Industries SAS, is continuing its inorganic expansion in India through mid-and-small cap buyouts. In the latest deal, Schneider Electric is acquiring a 55% promoters stake in APW President Systems Ltd for Rs 62.2 crore. The deal, which will trigger an open offer for another 20% stake, will see Schneider taking over the company.
APW designs and manufactures standard and customized racks and enclosure, particularly for IT and telecom firms.
Schneider Electric is taking the promoters' stake for Rs 195 per share, which is a 30% premium to Thursday's closing price of Rs 150.
The share price of APW hit the upper circuit today to reach Rs 157.5, up by 5% giving it a market capitalisation of Rs 94.5 crore today. APW has revenues of Rs 108 crore for 12 month period ending Sep '10 and has around 380 employees. APW has manufacturing facilities in Pune and Bangalore with sales and market offices across the country.
This is the fourth deal by Schneider Electric in last 19 months. It acquired Bangalore-based Conzerv Systems, an energy management firm with revenues of Rs 70 crore in June 2009. It followed one month later with acquisition of Bangalore-based Meher Capacitors, which manufactures power factor correction capacitors and offers comprehensive products and solutions.
Schneider last year acquired two electronic security system business units of Mumbai-based Zicom Electronic Security Systems for Rs 225 crore. The units, Building Solutions Group and Special Projects Group, focus on government and institutional sales with a turnover of Rs 180 crore.
Schneider Electric entered India in 1963 through a JV with Tata Group and established its subsidiary Schneider Electric India Pvt Ltd in 1995. In 2000, it acquired Chennai based S&S Switchgear and Nashik based Crompton Greaves Low Voltage division. Schneider Electric India also acquired global firm American Power Conversion (APC) in critical power and cooling solutions domain and security solutions provider Pelco in 2007. Schneider along with Alstom also acquired Areva, which included the India unit Areva T&D.
Schneider Electric offers integrated solutions across multiple market segments including energy and infrastructure, industrial processes, building automation and data centres and networks as well as residential applications. It achieved sales of more than 15.8 billion euros ($20.7 billion) in 2009.