Finance, Acquisition |04.28.2011
Legrand reinforces its positions in Brazil and steps up development in energy performance by acquiring SMS
Legrand announces the acquisition of SMS, the market leader for UPS1 in Brazil
The acquisition reinforces Legrand’s robust positions in Brazil and its offering in energy performance
In accordance with its strategy, Legrand is actively continuing its development through selffinanced acquisitions of small to medium-size businesses with leading places on their markets, and announces, subject to the approval of competent authorities in Brazil, the acquisition of SMS, number one for UPS1 in Brazil and a frontrunner across Latin America in this field.
SMS will round out the robust positions Legrand already holds in Brazil, where it takes first place for wiring devices, door-entry systems, miniature circuit breakers and industrial enclosures. In addition to quality products, SMS brings the benefits of a nationwide network of sales teams, distributors and service centers that will effectively extend the Group's sales reach in Brazil.Legrand is thus set to significantly strengthen its presence in a country and in a market segment that are both experiencing vigorous growth.
More generally, Legrand aims to accelerate development in new economies, which should account for 35% of total group sales this year.
Following its purchases of Alpes Technologies and Zucchini and, more recently, those of Inform and Meta System Energy, Legrand's acquisition of SMS marks a new step forward in the development of its energy-performance business, a fast-growing activity.
SMS operates in the Sao Paulo area and the north of Brazil, with three production sites and a workforce of over 1,100 people. In 2010, SMS sales were close to €80 million and operating margin was in double digits.
1 UPS: Uninterruptible Power Supply