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Pelco acquired by Schneider Electric

Schneider Electric has acquired California-based Pelco in a bid to expand its building automation offering.

August 1, 2007  By Staff

“Schneider Electric is an ideal partner for Pelco,” says Pelco president and chief executive officer David McDonald. “Both companies share the same commitment to people, innovation and customer service that will make our combined enterprise an even stronger, more competitive player in the industry.”

“The combination of our companies will create a unique portfolio of products, services and solutions in the building management industry,” say Arne Frank, executive vice-presidnt of Schneider Electric’s building automation unit. The company is based in Rueil-Malaison, France, about 16 kilometres from Paris. “Pelco’s unique position in IP-based video security represents a tremendous additional organic growth opportunity. With this acquisition, a very important additional step is made to further reinforce our leadership in open and integrated solutions for building IT.”

“This acquisition significantly reinforces our building automation business unit,” adds Jean-Pascal Tricoire, chief executive officer of Schneider Electric. “Pelco systems will integrate gradually in our power and control solution for buildings and infrastructure. Security offers a highly attractive profile and video is becoming the key application in the building management market.”
Factors contributing to the acquisition include Pelco’s position in the video security industry, it’s brand recognition, the size of its product line and its investment in research and development representing 7.5 per cent of sales.

Pelco will report into Schneider’s building automation business unit and will lead its fire and security product division.


Schneider Electric reports it is paying (US) $1.22 billion. In addition, Schneider Electric will pay the sellers the net present value of a tax benefit resulting from the step-up of Pelco’s assets, representing $320 million, bringing the company’s total price tag to $1.5 billion. Pelco employs about 2,200 people worldwide and it recorded sales of $506 million in 2006 of which 36 per cent was outside the U.S.

The company also reports Pelco had a debt of $139 million as of June 30. The purchase is still subject to anti-trust and other regulatory approval and expected to close by October.

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