Schneider Electric snaps up India's APW President
Schneider snaps up majority stake in customised rack company
Schneider Electric, global specialists in energy management, today announced it has signed an agreement to acquire a majority stake in APW President Systems in India, a company that designs and manufactures standard and customised racks as well as enclosure systems.
APW President Systems, which serves information technology and telecom end-users, has approximately 380 employees and generated sales of INR1.08 billion (approximately €18 million) for the 12-month period ended 30 September, 2010. The company has manufacturing facilities at Pune and Bangalore and has a broad customer base with sales and marketing offices across India.
With APW President Systems, Schneider Electric is well-positioned to capture opportunities in the fast growing Indian IT infrastructure sector as well as international markets, particularly in the Asia-Pacific and Middle East region. The company will also be able to tap into the talent pool and increase its solutions execution capabilities from server rooms to extra-large data centres.
Laurent Vernerey, Executive Vice-President of Schneider Electric’s IT Business, said: “APW President Systems brings the expertise to customise racks and enclosures for our global data centre customer base. With this acquisition, Schneider Electric becomes a leading Indian player in integrated data centre infrastructure solutions and further consolidates its status in the domain of data centres.”
Schneider Electric proposes to acquire shares representing a maximum of 75 per cent of the share capital of the company by acquiring a minimum of 55 per cent from the promoter shareholders of APW President Systems Ltd. and up to 20 per cent through a mandatory open offer to be made to the other shareholders. Depending on the response to the open offer, additional shares can be acquired from the promoter shareholders, provided the total number of shares acquired from the promoter shareholders, together with the shares acquired under the open offer, do not exceed 75 per cent of the share capital of the company.
The maximum price payable by Schneider Electric for the shares to be acquired from the promoter shareholders is INR195 per share (approximately €3.25 per share), which translates to INR622 million (approximately €10 million) for 55 per cent of shares from promoter shareholders. Pursuant to the open offer, the cost to acquire up to 20 per cent of the share capital will be in accordance with the applicable Indian law.
The completion of the transaction is subject to regulatory approvals and the satisfaction of conditions precedent. This acquisition is expected to meet Schneider Electric’s return on capital employed criteria.