Schneider Electric prepares to acquire Invensys building-management interests
Schneider Electric is to acquire the operations of Invensys Advanced Building Systems in Europe and the Middle East, subject to regulatory approvals. This Invensys division is a leading provider of building-automation solutions and services in the UK under the Satchwell brand name. The market for the automation and control of building utilities represents significant growth potential for Schneider Electric. It is worth about US$11 billion and is growing by more than 6% a year. This market also offers substantial synergy with Schneider Electric’s existing positions. Building automation is one of the growth platforms on which Schneider Electric has been focusing. The TAC acquisition in June 2003 enabled the company to become a major player in building automation. The subsequent merger between TAC and Andover announced in June 2004 further re-inforced Schneider’s position. The new business will be integrated with the new entity Tour Andover Controls (TAC). Combined revenues in 2005 will be US$800 million. David LeSage, managing director of Satchwell in the UK, commented, ‘We have already identified some strong dynamics between Schneider Electric’s market operations and our own, and both parties are totally committed to continuing to develop our position as a world-class supplier of building-management systems.