Schneider Electric "Extremely Pleased" With Pelco Acquisition

Aug 7, 2007 4:04 PM

"Schneider Electric is an ideal partner for Pelco. Both companies share the same commitment to people, innovation and customer service that will make our combined enterprise an even stronger, more competitive player in the industry. We look forward to the unique benefits this partnership will bring to our customers and employees," says David McDonald, president and chief executive officer of Pelco.

The comment is in response to the recent acquisition of Pelco Inc. by Schneider Electric of Rueil-Malmaison, France. Acquisition of the supplier of video security systems will further strengthen Schneider Electric's Building Automation offering.

Jean-Pascal Tricoire, chief executive officer of Schneider Electric, says, "Pelco systems will integrate gradually in our Power and Control solutions for buildings and infrastructure. Security offers a highly attractive growth profile, and video is becoming the key application in the building management market," he says.

"We are extremely pleased to have come to this historic arrangement with Pelco. Having personally visited Pelco, I have a firsthand appreciation for the company's unique commitment to its people, customers and community. These factors are core assets of the company and we are fully committed to continuing forward with this same, great culture," Tricoire says.

The price to be paid for Pelco at closing will be $1.5 billon. The transaction is subject to anti-trust and other regulatory approval and is expected to close by October 2007.

Commercial, industrial and residential buildings represent more than half of Schneider Electric's business. Building Automation, which encompasses power and HVAC control, electronic security and fire safety, is one of Schneider Electric's new businesses. They previously acquired TAC, Andover Controls and Invensys Building Systems.

Pelco will report into TAC, Schneider Electric's Building Automation Business Unit, and will take leadership of its present Fire & Security Product Division. Significant synergies will occur from the leveraging of Schneider Electric's Building Automation businesses, including their respective distribution networks and the possibility to offer complete solutions.

Arne Frank, chief executive officer of TAC, says, "The combination of our companies will create a unique portfolio of products, services and solutions in the building management industry. Pelco's unique position in IP-based video security represents a tremendous additional organic growth opportunity. With this acquisition, a very important additional step is made to further reinforce our leadership in open and integrated solutions for building IT."

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