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Strategy
Our growth strategy
Legrand’s development relies on two growth drivers. The first is organic growth, powered by ongoing innovation, with new-product launches at regular intervals, and commercial initiatives. The second is external growth, through targeted, bolt-on acquisitions of companies that complement the Group’s business. At the same time, megatrends in society, technology and user habits—aging populations, environmental protection, urbanization, increasing mobility, the Internet of Things, the digital revolution and more—offer important development opportunities, especially in energy efficiency, assisted living, datacenters and connected offerings. Legrand also believes that new technologies increasing the value-in-use of its products—which is why it launched the Eliot program in 2015. Aim: accelerate rollout of the Group’s Internet of Things offer, and position it at the heart of the connected building ecosystem.
Ongoing innovation momentum
Innovation is a continuing source of momentum at the heart of Legrand culture. In tandem with acquisitions, it drives the Group’s growth, enabling regular launches of new products with greater value-in-use, including connected products created under the Eliot program. Today innovation is stepping up the pace of Legrand initiatives inspired by new technologies.
Key Figures
4.8% of 2019 sales
invested in R&D
€819 million in connected product sales in 2019, up +29% over 2018
Over 2,600
employees worked in R&D in 2019
Between 2010 and 2019, the number of R&D staff members assigned to software rose by a factor of almost 5
Targeted acquisitions
Acquisitions enable Legrand to fuel its growth and expand market share. Over time, the Group has developed know-how in the acquisition process, and aims to pursue this strategy over the long term.
Legrand takes a targeted approach to external growth. Its strategy of bolt-on acquisitions focuses on companies that complement the Group’s business and have leading positions on buoyant markets.
Key Figures
173 companies acquired since 1954
67 external growth operations announced since 2004
About €2.9bn in annual acquired sales since 2004
Growth opportunities
Megatrends in technology (rising digitalization, growth in the Internet of Things and more), combined with changes in user lifestyles (including urbanization and increasing mobility) and society (such as aging populations and demand for energy efficiency), as well as growth in new economies, offer long-term growth prospects for Legrand.
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