French electrical equipment maker Schneider Electric announces it has finalized the acquisition of Pelco for $1.54 billion.
Pelco will be consolidated within Schneider Electric’s financial accounts as of October 16, according to a company statement.
Schneider Electric paid $1.2 billion, representing Pelco’s enterprise value, as well as an additional $320 million, which is the net value of the tax benefits resulting from the reevaluation of Pelco’s assets.
The acquisition is expected to strengthen Schneider Electric’s building automation business, which covers power and HVAC control, electronic security and fire-life/safety, and its ability to provide integrated solutions.
Pelco, a provider of video security systems and supporting equipment, employs a staff of 2,200 worldwide. The company ended 2006 with recorded sales of $506 million.
Pelco’s earnings before interest, tax, depreciation and amortization (EBITDA) totaled $46 million in 2006, while its earnings before interest, tax and amortization (EBITA) stood at $30 million.
