Legrand to Acquire Milestone AV, Will Merge With Middle Atlantic Products Brand
Legrand has signed an agreement to acquire Milestone AV for an enterprise value estimated to be $950 million.
EDEN PRAIRIE, Minn.— French wire management and electrical installation company Legrand announced today it has signed an agreement to acquire Milestone AV Technologies, a digital infrastructure company based here, for an enterprise value estimated to be $950 million.
Milestone AV is the parent company of brands such as Chief, Sanus and Da-Lite. Upon completion of the transaction, the plan is for Milestone and Legrand’s Middle Atlantic Products business to merge under the A/V Division of Legrand. Both the Milestone and Middle Atlantic Products lines will continue to remain in the marketplace, establishing an offering that can be expanded to serve A/V customers globally, according to a press release.
Legrand says the purchase is a “synergistic move” which will nearly double the company’s existing base of over 3,500 dealer relationships tied to its Middle Atlantic Products brand. Likewise, Milestone officials note that Legrand’s relationships with electrical, IT and data communication distributors could allow Milestone to move into these distribution channels in the mid-term.
The company notes that Milestone has built strong ties with distribution channels offering “wide geographical coverage” and access to corporate, hospitality, houses of worship, education, government and retail markets.
Additionally, the press release states that over 75% of Milestone sales are generated by products that rank No. 1 or No. 2 in their markets.
Chairman and CEO of Legrand Gilles Schnepp says the acquisition allows the company to pursue its ongoing reinforcement in digital infrastructure, more specifically in the high-value A/V infrastructure and power segment in the United States.
“Milestone will bring Legrand leading positions in commercial and residential AV mounts, as well as in projector screens enabling the Group to provide A/V customers with scalable, end to-end offerings,” Schnepp says.
“Combined with Legrand’s No. 1 positions in A/V enclosures in the US under the Middle Atlantic Products brand, Milestone will enable the Group to provide US customers with scalable, end-to-end offerings on a market driven by both social megatrends (communication, security, distance and collaborative working etc.) and technological megatrends (digitalization, new display technologies, streaming technologies etc.),” cites the announcement.
Milestone recorded 2016 revenues of $464 million, 90% in North America. Over the same period, adjusted operating profit and free cash flow stood at respectively 21% and 12.5% of sales.
The company employs around 1,000 and has locations in the United States, Canada, China, Hong Kong, Australia and the Netherlands. Its subsidiaries include Chief, Da-Lite, Sanus, Vaddio and Projecta.
Adam Forziati is the web editor for SSI’s sister publication Commercial Integrator.
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