Schneider Electric Enhances its Position in Core Low Voltage with the Acquisition of ASCO Power Technologies
ANDOVER, Mass., July 27, 2017 - Schneider Electric, the global specialist in energy management and automation, announced today that it has signed an agreement to acquire Asco Power Technologies ("ASCO"), a leader in the Automatic Transfer Switch ("ATS") market for a consideration of $1,250M in an all cash transaction. The acquisition enhances Schneider Electric's EcoStruxure Power Platform in key markets and segments.
ASCO currently employs 2,000 people, mainly in North America, and operates 7 manufacturing sites. ASCO, founded in Baltimore, has a long history in Power Management first introducing ATS in 1925 and later expanding into surge, loadbanks, and fire pump and control applications. ASCO's products are sold under the brands of ASCO, Firetrol, Avtron, Froment. Since December 2016, ASCO has been operating as a autonomous part of Vertiv (formerly Emerson Network Power).
ASCO is a market leader in power source management for critical buildings in North America. ATS automatically transfers critical loads from the primary source of power to the back-up power source in the event of a power outage. It requires compliance with specific technical regulation standards. Schneider Electric is the market leader in the ATS market in China. Both companies also operate in the ATS market in the rest of the world. With this acquisition Schneider Electric becomes the global market leader in ATS. With the addition of the ASCO portfolio, Schneider Electric's EcoStruxure Power Platform is further enhanced in North America with additional opportunities in the rest of the world. From an end-market perspective, the acquisition further enhances Schneider Electric's value proposition in the end-to-end energy management chain for customers in healthcare, financial services, Data centers and other critical buildings.
Jean-Pascal Tricoire, Chairman and CEO commented, "ASCO brings to Schneider Electric a well-recognized brand in North America, a strong level of know-how, prescription skills and network and a diversified customer base. Its leading position in Automatic Transfer Switch in North America complements our current offer in power distribution equipment in North America and it reinforces Schneider Electric's global leadership in energy management. With ASCO, we are enhancing our EcoStruxure Power management capabilities. This will help us to offer the most advanced solutions and technologies for critical buildings in a more decentralized world. A market with natural growth as more commercial and industrial customers move towards autonomous or multi-source energy management."
The market for ATS presents attractive long-term growth opportunities as more commercial and industrial customers move towards autonomous or multi-source power management. This trend is driven by a more decentralized power generation world, core to Schneider Electric's strategic focus. The acquisition is subject to customary regulatory approvals and is expected to be closed by end-2017. Post deal closure, the ASCO business will form part of the Schneider Electric Building business (Low Voltage).
About Schneider Electric
Schneider Electric is the global specialist in energy management and automation. With revenues of $26 billion US (25 billion euros) in FY2016, our 144,000+ employees serve customers in over 100 countries, helping them to manage their energy and process in ways that are safe, reliable, efficient and sustainable. From the simplest of switches to complex operational systems, our technology, software and services improve the way our customers manage and automate their operations. Our connected technologies reshape industries, transform cities and enrich lives. At Schneider Electric, we call this Life Is On.
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