Global electronic component and service provider YAGEO Corporation announced that it has entered into a binding commitment with Schneider Electric to acquire its Telemecanique Sensors business in an all-cash transaction. The proposed transaction values the Telemecanique Sensors’ business at an enterprise value of EUR 723 million (approximately USD 729 million) with an estimated equity value of approximately EUR 686 million (approximately USD 692 million) assuming customary adjustments at closing and will be financed entirely through existing cash. Schneider Electric will grant YAGEO a license to use the Telemecanique Sensors name, and YAGEO will obtain the relevant sensor patents. The proposed transaction was approved by the relevant governance bodies from both parties.
The Telemecanique Sensors business is a global specialist in the design, development, and delivery of electromechanical and electronic industrial sensors. The Telemecanique Sensors business generated around EUR 280 million (approximately USD 331 million) in 2021 revenue and benefits from a worldwide presence with approximately 70 percent of its revenues from North America and Europe. With over 90 years of industry experience, the Telemecanique Sensors business has built a broad portfolio of sensing solutions, including high-end limit switches, proximity sensors, and pressure sensors. Its products are used in applications in a wide array of industries, such as IoT, Industrial Automation, Industry 4.0 and Infrastructure.
This proposed transaction continues YAGEO’s strategic focus on the premium component segment and will further broaden YAGEO’s high design-in product portfolio and extend its position as a global premium component solution provider.
The Telemecanique Sensors business will benefit from YAGEO’s dedicated sales and engineering resources to help ignite the next stage of its growth. With the Telemecanique Sensors’ long-term presence in the B2B segment and broad product portfolio, YAGEO will be able to further develop its global relationships with its industrial customers through expansion of its offer of sensing solutions.
The appropriate employee representative bodies of Schneider Electric will be informed and consulted on the contemplated carve-out of the Telemecanique Sensors business and subsequent sale, in accordance with the legislation of the countries concerned.
The completion of the proposed transaction is expected to occur in the coming months, subject to the receipt of required regulatory approvals.