July 27 (Reuters) - French electrical component and energy management group
Schneider Electric said on Thursday it was buying automatic transfer switch
maker Asco Power Technologies (Asco) for $1.25 billion and raising its full year
revenue and margin guidance.
The all-cash deal aims to boost Schneider Electric's position in North
America, and enhance its offer for buildings that use autonomous or multi-source
power management.
Asco brings to Schneider Electric a well-recognized brand in North America, a
strong level of know-how, prescription skills and network and a diversified
customer base," Chief Executive Jean-Pascal Tricoire said in a statement.
The company raised its objectives for 2017 on Thursday, following solid
growth in its building, industry and IT segments in the first half.
The company is now targeting organic revenue growth between three and four
percent for the group, outside infrastructure.
In April, the group confirmed a target of organic revenue growth of between
one and three percent outside infrastructure.
The group also said it was now aiming for the upper end of its initial target
to increase its organic adjusted core profit (EBITA) margin by between 20 and 50
basis points.
Adjusted organic core profit (EBITA) for the first half of 2017 rose 7
percent to 1.72 billion euros ($2.02 billion), with the margin rising by 60
basis points to 14.1 percent.
The company said it was launching a strategic review of part of its
infrastructure business, with "all options being explored".
"The part of the portfolio of c.2 billion euros, that consists mainly of
projects and equipment and with a mid-single digit adjusted EBITA level, will
undergo additional steps to generate increased efficiency for the business." it
said. ($1 = 0.8522 euros)
Asco has been operating as an autonomous
part of data center infrastructure provider Veritiv; it posted $468M in revenue
during 2016 with an adjusted EBITDA margin of nearly 23%.
Schneider also reports
H1 results, with revenues up 3.7%
Y/Y to €12.17B and net Income up 18% Y/Y to €958M, and raises its full-year
revenue and margin guidance.
.
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