Schneider Electric’s Acquisition of Applied Instrument Technologies Adds to Its Process Automation Portfolio

Schneider Electric, a global specialist in energy management and automation, has acquired Applied Instrument Technologies, Inc., a leading provider of online process analyzers for the hydrocarbon, petrochemical, chemical, pharmaceutical and steel-making industries. The acquisition adds to Schneider Electric's process automation portfolio that also includes Foxboro plant instrumentation, Foxboro and PlantStruxure PES process automation systems, Modicon PAC systems, and Triconex safety systems.

Based in Upland, California, AIT has an installed base of over 1,000 systems and a breadth of spectroscopy and chromatography solutions, including a broad portfolio of process analyzers and associated implementation services. Its technology helps to improve process optimization, asset protection and compliance with environmental regulations, which should help its customers to better manage and improve their operational profitability.

The addition of AIT should help to improve Schneider Electric's competitiveness in process automation with its ability to deliver multi-stream, multi-component analytical systems, which should help its customers to reduce project risk and execution time. As a single source provider, the combined offering provides additional flexibility in terms of how the company can price, position and package its process automation solutions. The acquisition builds on a partnership the two companies established in 2015.

The acquisition should provide Schneider Electric with the opportunity to extend its process measurement, automation and safety solutions to a broader customer base, especially in fuels blending, petrochemicals and gas processing.

AIT and its offerings will be fully integrated into Schneider Electric's process automation business and will continue to be managed by its existing executive team.

Craig Resnick, ARC Advisory Group, commented, "This acquisition helps to advance Schneider Electric's position in the refining, petrochemical and gas processing markets, enabling a more integrated and scalable control, safety and measurement portfolio. ARC expects these complementary offerings will enable additional customer value, especially safety, reliability and efficiency gains for both customer sets, helping Schneider Electric's customers to become more cost-competitive and reduce risk and execution time on projects. The acquisition also opens up additional services, R&D and global execution capabilities for existing AIT customers, while improving AIT's abilities to fulfill major projects."

Keywords: Operational Profitability, Process Measurement, Automation, Fuels-Blending Analysis, ARC Advisory Group.