American Power Conversion (APC) to be Acquired by Schneider Electric

By Eddyson Lugangwa Posted 02 November 2006 @ 11:41 am EET     Print     Reprint     E-Mail     Comments

Pretoria (IBTimes.com) - American Power Conversion to be acquired by Schneider Electric in transaction valued at approximately $6.1bn. APC a global leader in power availability solutions, and Schneider Electric SA, a leading provider of solutions for electrical distribution, industrial control and automation projects, announced today that the two companies have executed a definitive merger agreement under which Schneider Electric will acquire all outstanding shares of APC for $31 per share in cash. The aggregate transaction value is approximately $6.1 billion.

The combination of these two businesses will create an industry leading business for both single-phase and three-phase uninterruptible power supply (UPS) systems as well as the pre-eminent provider of integrated systems for IT and data centre applications.

Rob Johnson, APC's president and chief executive officer, said: "This transaction provides APC stockholders with an immediate and substantial cash premium for their investment in the company. Upon completion of the transaction, APC will become part of Schneider Electric, with greater resources to accomplish our long-term plans, which will be favourable for our employees, customers, business partners and suppliers worldwide.

Both companies have a dedication to innovation and customer service that make our combined enterprise an even stronger, more competitive player in the industry."

The transaction, which is expected to close in the first quarter of 2007, is subject to approval by APC shareholders and other customary conditions. The board of directors of APC has approved the transaction with Schneider, and intends to recommend to APC's shareholders that they approve the transaction. APC's shareholders are expected to vote on the transaction in early 2007. Approval from Schneider Electric's shareholders is not required.

Jean-Pascal Tricoire, chief executive officer of Schneider Electric, Said: "This transaction is a tremendous opportunity for growth and for both companies, together, to provide unique, differentiated solutions to our combined customers. We look forward to welcoming APC to the Schneider Electric family."

Goldman, Sachs & Co served as financial advisor to APC, and Clifford Chance US LLP served as its legal advisor. Lazard Fries and Merrill Lynch served as financial advisors to Schneider Electric, and Cravath, Swaine & Moore LLP served as its legal advisor.