After entering into exclusive negotiations on 21 June, Schneider Electric has signed an agreement with Eaton Corp to divest MGE UPS Systems operations in small systems.
The divestment was a condition set out by the European Commission following Schneider Electric's acquisition of American Power Conversion (APC).
The transaction values the business, which generated revenues of €156-million in 2006 and an EBIT margin of 20,5%, at approximately €425-million (on a debt
free cash free basis).
Eaton intends to pursue the business' current development strategy, which has been very successful in recent years, relying on the existing management team and the expertise and know-how of its employees.
The parties believe that they could be in a position to close the transaction by the end of October.