Schneider Electric completes acquisition of Invensys

Schneider Electric announced today that it completed its acquisition of Invensys PLC, a global automation player with a large installed base and a strong software presence. The deal previously was reported to be a $5 billion transaction.

01/17/2014


The next-gen Invensys Foxboro Evo process automation system features a high-speed controller, field device management tools, and intuitive interfaces while reducing operating risk and enable greater visualization. Courtesy: Invensys

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With the acquisition of Invensys, Schneider Electric is significantly enhancing its position as a provider of efficiency solutions, integrating power and automation. The transaction will allow the combined entity to have a unique position in industrial and infrastructure end-markets.

Jean-Pascal Tricoire, chairman and CEO of Schneider Electric, commented: “We are delighted to announce the completion of the acquisition of Invensys and warmly welcome the teams joining us. With Invensys, Schneider Electric will reinforce its industrial automation capabilities, boost its positions in key energy-intensive segments and strengthen its software offering. Together, we will create substantial value for our customers, shareholders and employees.” 

The Modicon M168 programmable logic controller was designed by Schneider Electric to help OEMs and end users improve performance, optimize costs, and speed time-to-market for HVAC/R machines.

“Invensys brings proven capabilities in process automation technologies that are very complementary with those of Schneider Electric’s Industry business,” said Clemens Blum, executive vice-president of the Industry business of Schneider Electric. “We are now in a position to offer to both our customers and those of Invensys a unique value proposition in terms of segment know-how, technologies and geographic footprint.”

Click here for the entire press release and Euronext Paris trading information about Schneider Electric

 

Deal history and background:

Invensys businesses cover four main areas: software (visualization, human-machine interface, supervisory control, process design, simulation, optimization, and asset management); industrial automation (control systems, safety system, and instrumentation); energy controls (process controls and heating, temperature, and remote monitoring controls for industrial, commercial, and residential applications); and appliance business (components and systems for cooking, refrigeration, laundry, and dishwashing—commercial and residential). Their business and brands include Foxboro, Foxboro Eckardt, Triconix, Indusoft, Wonderware, SimSci-Esscore, Avantis, Eurotherm, Eliwell, Ranco, Drayton, Eberle, Robertshaw, IMServ, Centeron, Paragon, and Uni-Line.

In its 2013 annual report, Invensys said it works with 23 of the top 25 petroleum companies, 48 of the top 50 chemical companies, 18 of the top 20 pharmaceutical companies, 35 of the top 50 nuclear power plants, all of the top 10 mining companies, 7 of the top 10 appliance manufacturers. It enables 20% of the world’s electricity generation, 18% of the world’s crude oil refining, 37% of the world’s nuclear energy generation, 62% of the world’s liquefied natural gas production, and 23% of the world’s chemical production, according to the same report. Revenue in 2013 was 1,792 million Euro, up 2% from the same year-ago period. Earnings per share increased 60%.

Schneider Electric has businesses and brands for Automation and Control, Electrical Distribution, MV Distribution & Energy Automation, Installation Systems & Control, and Building Management. Schneider Electric reported 2013 sales of 23.946 million Euro.

- Edited by Jordan M. Schultz and Mark T. Hoske, content managers CFE Media, Control Engineering and Plant Engineering jschultz(at)cfemedia.com and mhoske(at)cfemedia.com.



Anonymous , 01/21/14 02:25 PM:

ABB and Siemens NOW have a very strong competitor to provide the whole palette of Electrical/Control solutions worldwide. It's a very clever move of SCHNEIDER to forge her name as a complete control system giant in almost all industries.
This synergy will also push her LV and MV project sales.
Anonymous , 01/29/14 09:51 AM:

I hope Genesis/Iconics keeps its independence, but I won't be surprised to see it acquired by one of the mega-giants.
Acquisitions do make for one-stop-shopping for all electrical and control needs, but I prefer competition.