International. Schneider Electric confirmed that it has entered into exclusive negotiations with Transom Capital Group, a U.S.-based private equity firm, regarding the sale of its Pelco business unit.
Pelco, well known as a global specialist in the design, development and delivery of reliable end-to-end video surveillance solutions and services including cameras, recording software and management systems, had revenues of €169 million in 2018 and employs 478 employees.
The proposed transaction follows the strategic review announced in Schneider Electric's 2018 results on assets totaling €1.5 to 2 billion in revenue, as the Group continues to focus its activities on core energy management and industrial automation offerings.
The proposed transaction is subject to consultation by the relevant working councils and will be finalized once this process is successfully completed. Under the current terms, it would result in a non-monetary loss in the disposition of up to €250 million, the net impact of which would be excluded from the net income used for the calculation of dividends.
The transaction would accrue in c.+10bps to the Group's adjusted EBITA margin for the full year.
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