T&D World Magazine

Schneider Electric Negotiates with Eaton for Divestment of MGE UPS Systems' Operations in small systems

Schneider Electric has entered into exclusive negotiations with Eaton Corp. for the divestment of MGE UPS Systems operations in small systems, as per its prior commitment to the European Commission following the acquisition of American Power Conversion.

Eaton is offering €425m (on a debt free cash free basis) for the business, which generated revenues of €156m in 2006 and an EBIT margin of 20.5%.

Eaton intends to pursue MGE's current development strategy, which has been successful in recent years, relying on the existing management team and the expertise and know-how of its employees.

The parties believe that they could be in a position to reach a mutually satisfactory agreement this month, following the completion of all prior legal requirements, and in this case to close the transaction during the third quarter.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish