Invensys sells Advanced Building Systems EMEA for US$150 million
Posted: 13 June 2005
Invensys plc has signed an agreement to sell the majority of its Advanced Building Systems operations in Europe and the Middle East (“ABS EMEA”) to Schneider Electric SA of France for a gross cash consideration of £81 (1) million.
This disposal follows the Group’s previously stated intention of exiting the contracting and services part of its building management systems (“BMS”) operations within its Controls business and focussing instead on becoming a key supplier of products and systems to the BMS industry. The ABS operations in the rest of the world, which are headquartered in Rockford, IL, will be working in partnership with the buyer to sell ABS products and services into EMEA territories.
 ABS EMEA is the leading provider of BMS in the UK under the Satchwell brand name and has a strong presence across the rest of Europe and the Middle East. The transaction includes Satchwell in the UK, Atmostech in Finland, Controlli in Italy, Messner in Germany and a number of other businesses operating under the Satchwell name across Europe and Middle East.
In the year ended 31 March 2005, the ABS EMEA businesses being disposed of reported sales of £94 million and operating profit (2) of £5 million. The net operating assets of these businesses at 31 March 2005 were £25 million. Of the £94 million of divested revenue, £68 million was contracting & services and £26 million related to products. The ABS operations in the rest of the world had sales of £130 million.
The transaction is subject to customary regulatory approvals and is expected to complete by the end of July. Proceeds from this disposal will be applied towards satisfying the Group’s liabilities.
Ulf Henriksson, Chief Executive Designate of Invensys plc, commented: “This is a deal that makes sense strategically for both Invensys Controls and its subsidiary ABS business. It also makes sense financially."
Posted by Editor Pipeline Magazine
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