Electronics Production |
Schneider Electric acquires Wessen
Schneider Electric has signed an agreement to acquire the Wessen Group, a leading Russian manufacturer of wiring accessories, primarily switches and sockets, from Ahlström Capital.
Wessen designs, manufactures and markets a comprehensive range of wiring devices. In 2007, It generated sales of nearly €24 million, of which 90% in Russia.
With this acquisition, Schneider Electric will significantly reinforce its exposure to the low voltage installation market in Russia, which is expected to grow annually by 15% in the next 5 years. Wessen products will also further complete Schneider Electric’s offering in wiring devices.
Christian Wiest, Executive Vice-President of Schneider Electric’s International Operating Division, commented: “The acquisition of Wessen will give an opportunity to capture growth in one of the most dynamic residential markets in the world. It will also contribute to accelerate our development in emerging countries, which already accounted for 32% of Schneider Electric’s sales in 2007.“
Subject to the authorisation of the Russian antitrust authorities, the transaction is expected to be finalised in the second quarter of 2008. This acquisition meets Schneider Electric’s Return on Capital Employed criteria.
The Wessen Group was founded in 1966 as Potencial. Potencial adopted the name of Wessen in 2002. The company now employs 1,800 people and maintains a factory in Kozmodemiansk, Russia. Additionally, the company has 7 sales agencies in Russia.
