Schneider Electric looks to sell off Pelco unit
Schneider Electric announced this week it has entered into exclusive negotiations to sell off its Pelco surveillance business unit to Transom Capital Group, a U.S.-based private equity firm.
According to Schneider Electric, Pelco generated €169M (approximately CDN$255M) in revenue in 2018 and employs 478 people. Pelco is currently reported under Schneider Electric’s energy management business.
The company says that the proposed transaction “follows the strategic review announced in Schneider Electric’s 2018 results on assets totalling €1.5-2 billion of revenues, as the Group continues to focus its activities on core energy management and industrial automation offerings.”
Further, the transaction is subject to “the consultation of the relevant work councils and would be finalized upon the successful completion of this process.
“Based on current terms, it would trigger a non-cash loss on disposal of up to €250m, the net impact of which would be excluded from the net income used for dividend calculation.”
Schneider Electric originally acquired Pelco in 2007 for US$1.22B.
More on this story as it develops.