Schneider Electric Enhances Its Position In Core Low Voltage With The Acquisition Of ASCO Power Technologies
- Published: Thursday, 27 July 2017 08:32
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 (c.€1,072m) in an all cash transaction.
The acquisition enhances Schneider Electric’s EcoStruxure Power Platform in key markets and segments.
ASCO currently employs c.2,000 people, mainly in North America, and operates 7 manufacturing sites. Its revenues in CY20161 reached $468m with an adjusted EBITDA margin of c.23%. 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 well-run and 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, Datacentres and other Critical Buildings.
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.
Note: 1. CY2016: calendar year 2016