Global energy equipment manufacturer Schneider Electric, Rueil-Malmaison, France, signed an agreement to acquire American automatic transfer switch manufacturer Asco Power Technologies, Florham Park, NJ, part of Vertiv, the recently spun-off and renamed Emerson Network Power, which was acquired from Emerson by Platinum Equity in December 2016. For its all-cash deal worth $1.25 billion, Schneider gains a leading position in the automatic transfer switch (ATS) global market and a larger position in the North American market in particular.
Schneider Electric said the acquisition enhances its EcoStruxure Power Platform in key markets and segments. ASCO has about 2,000 people in seven manufacturing locations, mainly in North America. Its revenues in the 2016 calendar year were $468 million with an adjusted EBITDA margin of about 23%.
ASCO was founded in Baltimore and has a long history in power management. It introduced ATS in 1925 and later expanding into surge protection, loadbanks, and fire pump and control applications. ASCO’s products are sold under the ASCO, Firetrol, Avtron and Froment brands. Since December 2016, ASCO has been operating as an autonomous part of Vertiv.
Vertiv said in a release that selling ASCO to Schneider Electric allows Vertiv to apply additional resources toward business and technological advancements in its core data center, telecommunications and commercial and industrial markets.
Schneider’s release said it is already the ATS market leader in China and the addition of ASCO makes it the global market leader.
"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."