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Electronics Production | May 31, 2011

Schneider Electric acquires 74% of Luminous

Schneider Electric has signed an agreement to acquire 74% of Luminous Power Technologies Pvt. Ltd., India-based company that provides inverters, UPS and power storage systems.
Luminous has a strong presence in India and employs approx. 3'000 people in 8 different industrial sites in India and 1 in China. It has generated revenues of INR 11.0 billion (EUR 170 million) for the fiscal year ending March 2011.

The purchase price for 74% of the shares is INR 14 billion (EUR 215 million). The total net debt of the company was INR 2.4 billion (EUR 37 million) as of 31 March 2011, leading to an implied transaction multiple of ~16x fiscal 2011 EBITDA. The remaining 26% owned by the founders will be subject to put and call options.

This acquisition is expected to be accretive on earnings per share from the first year. This return on capital employed of the acquisition is expected to beat Schneider Electric’s weighted average cost of capital in year in year 4.

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