Home » Schneider Electric to Buy American Power Conversion for $6.1B
Schneider Electric to Buy American Power Conversion for $6.1B
October 30, 2006
Schneider Electric has agreed to acquire American Power Conversion for $6.1 billion in cash. APC and its subsidiary MGE UPS Systems are suppliers in the critical power market, which, according to Schneider, is enjoying fast and sustainable long-term growth.
"This growth is driven by the need for power supply continuity in an increasing number of critical applications, concerns regarding reliability of the power grid and development of digital information traffic," Schneider reports. "Critical power is at the heart of one of Schneider Electric's core business: electrical distribution, of which it is the fastest growing segment."
APC had sales of about $2 billion in 2005 and has had 12 consecutive quarters of double-digit growth. APC has 52% of its sales in the U.S., 30% in Europe and 18% in Asia, where it has a strong manufacturing base.
About 74% of APC's sales are in small and medium uninterruptible power supply (UPS) systems.