Connect - Schneider Electric

4 BUSINESS REVIEW
REVIEW OF THE CONSOLIDATED FINANCIAL STATEMENTS
> 2. Review of the consolidated
financial statements
Review of business and consolidated statement of income
Changes in the scope of consolidation
Acquisitions
On January 7 , 2011, Schneider Electric announced the
signature of an agreement to acquire a majority of the shares in
APW President Systems Ltd. which designs and manufactures
standard and customized racks and enclosure systems in India,
serving in particular information technology and telecom end-users.
APW President Systems Ltd. has approximately 380 employees
and generated sales of INR1.08 billion (approx. EUR17 million)
for the twelve months ending September 30, 2010. With
APW President Systems Ltd., Schneider Electric is well positioned
to capture opportunities in the fast growing Indian IT infrastructure
market as well as in international markets, particularly in Asia Pacifi c
and Middle East. The Group will also be able to tap the talent pool
and increase its solutions execution capabilities from server rooms
to extra large data centres.
On March 24, 2011, Schneider Electric announced the signature of
an agreement to acquire Summit Energy Services Inc., an American
company leader in outsourced energy procurement and sustainability
services to industrial, commercial and institutional enterprises. It is
employing more than 350 individuals and serves client facilities in
more than 90 countries. Summit Energy is a fast-growing business,
expected to generate sales of approximately USD65 million for the
current year. The acquisition of Summit Energy allows Schneider
Electric to broaden its energy management services and solution
portfolio, offering customers the ability to manage and optimize their
energy consumption from the supply side through the demand side,
while also growing Schneider Electric’s energy and environmental
online reporting capabilities.
On March 31, 2011, Schneider Electric announced the signature of
an agreement to acquire from Smartlink Network Systems Ltd. the
assets of the Indian company DIGILINK business, one of the leading
structured cabling systems providers in India. Headquartered in
Mumbai, the DIGILINK business has 92 employees and generated
sales of about INR1.55 billion (approx. EUR25 million) in calendar
year 2010. With this acquisition the Group will be able to gain
access to DIGILINK’s well-established distribution network in
the retail sector which complements its presence in enterprise
segments and will generate signifi cant cross-selling opportunities
for its Power and IT products.
On April 4, 2011, Schneider Electric announced the signature of
an agreement to acquire in the United States Lee Technologies, a
leading service provider for the data centres of the North American
market. Headquartered in Fairfax, Virginia, Lee Technologies has
over 300 employees and generated sales of about USD140 million
146 2011 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC
(approx. EUR104 million) in 2010. Lee Technologies brings to
Schneider Electric capabilities ranging from consulting, site
assessment, design, equipment specifi cation and selection to
integration, commissioning, facility operations staffi ng, maintenance
and proactive 24x7 remote monitoring. This full repertoire of
services will reinforce Schneider Electric’s IT business skills in data
centre management and its ability to provide data centres, one
of the world’s fastest growing end-users of energy, with the best
standards in energy conservation and reliability.
On May 30, 2011, Schneider Electric announced the signature of
an agreement to acquire 74% of Luminous Power Technologies
Pvt. Ltd., a market leader in India that provides inverters, UPS and
power storage systems to help homes and small and medium sized
businesses face frequent power cuts. Luminous is a leading player
in the around EUR800 million Indian inverter and power storage
market that is growing at more than 20% a year. Luminous has
a strong presence in India and employs approx. 3,000 people
in eight different industrial sites in India and one in China. It has
generated revenues of INR11.0 billion (approx. EUR170 million)
for the fi scal year ending March 2011.With Luminous, Schneider
Electric will become the leader in the Indian inverters and secured
power market and gain access to a complementary retail network.
On June 9, 2011, Schneider Electric announced the signature
of an agreement to acquire Leader Harvest Power Technologies
Holdings Limited (“Leader & Harvest”), one of the leading
players in the fast-growing medium voltage drives market in
China. Headquartered in Beijing, Leader & Harvest develops,
manufactures and commercialises medium voltage (MV) variable
speed drives. The company employs over 750 people and has an
extensive inhouse nationwide sales and service support network
across 30 provinces. With an annual growth rate in excess of 20%
in the past few years, the company is expected to generate sales
of approximately USD150 million (approx. EUR100 million) for
2011. Leader & Harvest’s range represents an excellent addition
to Schneider Electric’s industrial automation range of products
and solutions. Medium voltage drives are a key element of energy
effi cient solutions to our key target segments of mining, minerals &
metals and water & waste water.
On July 21, 2011, Schneider Electric announced it has entered into
a partnership with NVC Lighting Holding Limited (“NVC Lighting”) to
speed up its market penetration in smaller cities in China via NVC
Lighting’s well established diffused channels. The partnership will
give Schneider Electric an exclusive access to diffused channels
and bring forth strong revenue synergies. NVC Lighting has a solid
presence in China with broad diffused channels and extensive retail
management experience. It has the access to over 3,000 retail
outlets, half of which are located in smaller cities and townships.