Schneider powers up for US$6.1 billion APC buy

Schneider Electric has announced that it is to buy power availability solutions giant American Power Conversion (APC) for US$6.1 billion cash. Schneider Electric already has a strong presence in the intelligent power protection solutions space through its subsidiary MGE UPS Systems.

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By  Stuart Wilson Published  October 30, 2006

Schneider Electric has announced that it is to buy power availability solutions giant American Power Conversion (APC) for US$6.1 billion cash. Schneider Electric already has a strong presence in the intelligent power protection solutions space through its subsidiary MGE UPS Systems. The two companies claim that the combination of Schneider and APC will create an industry leading business for both single-phase and three-phase uninterruptible power supply (UPS) systems as well as the preeminent provider of integrated systems for IT and data center applications. Rob Johnson, APC’s president and CEO, said: "This transaction provides APC stockholders with an immediate and substantial cash premium for their investment in the company. Upon completion of the transaction, APC will become part of Schneider Electric, with greater resources to accomplish our long-term plans, which will be favourable for our employees, customers, business partners and suppliers worldwide. Both companies have a dedication to innovation and customer service that makes our combined enterprise an even stronger player in the industry." The transaction is expected to close in the first quarter of 2007 subject to approval by APC shareholders and other customary conditions. The Board of Directors of APC has approved the transaction with Schneider Electric, and intends to recommend to APC’s shareholders that they approve the transaction. APC’s shareholders are expected to vote on the transaction in early 2007. Approval from Schneider Electric's shareholders is not required. Jean-Pascal Tricoire, CEO at Schneider Electric, said: “This transaction is a tremendous opportunity for growth and for both companies, together, to provide unique, differentiated solutions to our combined customers. We look forward to welcoming APC to the Schneider Electric family.” Headquartered in France, Schneider Electric employs some 88,670 staff across 130 countries and posted sales of US$14.9 billion in 2005.

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