Schneider Electric takes a leading position in the wiring devices market in Russia with the acquisition of Wessen
Rueil Malmaison, France – April 17, 2008 – Schneider Electric has signed an agreement to acquire the Wessen Group, a leading Russian manufacturer of wiring accessories, primarily switches and sockets, from Ahlström Capital.
Wessen designs, manufactures and markets a comprehensive range of wiring devices. In 2007, It generated sales of nearly €24 million, of which 90% in Russia. The company has a leading position on Russian residential programs.
With this acquisition, Schneider Electric will significantly reinforce its exposure to the low voltage installation market in Russia, which is expected to grow annually by 15% in the next 5 years. Wessen products will also further complete Schneider Electric’s offering in wiring devices.
Christian Wiest, Executive Vice-President of Schneider Electric’s International Operating Division, commented: “The acquisition of Wessen will give a unique opportunity to capture growth in one of the most dynamic residential markets in the world. It will also contribute to accelerate our development in emerging countries, which already accounted for 32% of Schneider Electric’s sales in 2007.“
Subject to the authorisation of the Russian antitrust authorities, the transaction is expected to be finalised in the second quarter of 2008. This acquisition meets Schneider Electric’s Return on Capital Employed criteria.
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