Schneider Electric pursues its global expansion in variable speed drives
Rueil Malmaison, France – July 12, 2006 – Schneider Electric announced that it will acquire, subject to regulatory approvals, VA TECH ELIN EBG Elektronik in Austria.
This acquisition builds on the longstanding partnership between the two companies, as well as on the 60%-40% joint venture set up by Schneider Toshiba Inverter and VA TECH ELIN EBG Elektronik in 2004. Schneider Electric, a world leader in variable speed drives, will strengthen its position in the growing high-power segment (over 75 kW) with this transaction.
VA TECH ELIN EBG Elektronik has years of experience and recognized expertise in the development and manufacture of high-power variable speed drive products and solutions. It enjoys solid market positions in Germany and Austria with its pDRIVE brand. The company's 114 employees generated revenues of €34 million in 2005.
The acquisition of VA TECH ELIN EBG Elektronik fits in fully with Schneider Electric's growth strategy in variable speed drives. Michel Crochon, Executive Vice-President of the Automation Business Unit at Schneider Electric, commented: "ELIN provides a perfect addition to the product and solutions lineup that the group wants to offer all its customers in this field."
Schneider Electric expects that this acquisition will meet its Return on Capital Employed criteria within 3 years from completion.
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