October 27, 2022 – Global electronic component and service provider YAGEO Corporation (2327.TW) (“YAGEO”) announced today that it has entered into a binding commitment with Schneider Electric (SU.PA), the leader in the digital transformation of energy management and automation, to acquire its Telemecanique Sensors business in an all-cash transaction. The proposed transaction values Telemecanique Sensors’ business at an enterprise value of EUR 723 million (approximately USD 729 million[1]) 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 SensorsTM name, and YAGEO will obtain the relevant sensor patents. The proposed transaction was approved by relevant governance bodies from both parties.
Telemecanique Sensors is a leading global specialist in the design, development, and delivery of mission-critical electromechanical and electronic sensors. Telemecanique Sensors generated around EUR 280 million (approximately USD 331 million[2]) in revenue in 2021 and benefits from a worldwide presence with approximately 70% of its revenues in North America and Europe. With over 90 years of continuous innovation in sensors, Telemecanique Sensors has built a broad portfolio of sensing solutions including high-end limit switches, proximity sensors, and pressure sensors. Its products are used in several fast-growing macro trends such as IoT, Industrial Automation, Industry 4.0 and Infrastructure, including a wide array of applications.
This proposed transaction continues YAGEO’s strategic focus on the premium segment and will further broaden YAGEO’s high design-in product portfolio and extend its position as a global premium component solution provider. “We are delighted to welcome Telemecanique Sensors into YAGEO Group. The proposed acquisition will be a major milestone for YAGEO to further strengthen its position in the sensor market, which will be a significant growth driver for YAGEO,” said YAGEO Founder and Chairman Pierre Chen. “We will be able to deliver an even more comprehensive product range for our customers from passive components to a broad range of high-end electronic components. YAGEO will have more than USD 600 million of annual revenue, which is around 14% of the revenue, across a wide selection of sensing products, creating a strong platform for our continued expansion.”
Telemecanique Sensors will benefit from YAGEO’s dedicated sales and engineering resources to ignite the next stage of its growth. With Telemecanique Sensors’ long-term presence on the B2B segment and state-of-the-art product portfolio, YAGEO will be able to further broaden its global relationships with its industrial customers through expansion of its offer of innovative sensing solutions.
Jean-Pascal Tricoire, CEO and Chairman, Schneider Electric, said: “We believe that YAGEO has the right capabilities and culture to support Telemecanique Sensors and its management team to deliver on their ambition and accelerate growth. With a track record of successful M&A and company integration, YAGEO is committed to support Telemecanique Sensors’ specialization and unleash the full potential of the company and its team.”
The appropriate employee representative bodies of Schneider Electric will be informed and consulted on the contemplated carve-out of 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.
BNP Paribas is acting as the exclusive financial advisor to YAGEO on this landmark transaction.