French energy management company Schneider Electric SA yesterday outlined plans to buy China's Leader & Harvest Technologies Holdings Ltd, a manufacturer of medium voltage drives, for $650 million.
The proposed acquisition comes a week after Schneider Electric launched a $2-billion cash tender offer for Spanish software developer for smart electricity grids, Telvent GIT, SA. (See: Schneider Electric launches $2 billion bid for Spain's software firm Telvent) and announced plans to acquire a 74-per cent in Delhi-based Luminous Power Technologies, a maker of inverters and power storage systems, for €215 million (around Rs1,384 crore). (See: Schneider Electric to acquire 74-per cent stake in Luminous for €215 million)
Beijing-based Leader & Harvest develops, manufactures and sells medium voltage variable speed drives. The company employs over 750 people and has a nationwide sales and service support network across 30 provinces.
Leader & Harvest's medium voltage drives range from 2 kV to 11 kV, while Schneider Electric is already a leading player in low voltage drives, which serve different market segments.
With an annual growth rate of over 20 per cent in the past few years, the company is expected to generate sales of approximately $150 million for the current year.
According to Schneider Electric's recent estimates, energy efficiency would represent an incremental market $45 billion annually by year 2020, a significant portion of which would come from the industrial end-markets in new economies.