Schneider Electric to buy Russian electrical manufacturer

Industrial Distribution staff -- Industrial Distribution, 4/17/2008 7:46:00 AM

Schneider Electric agreed to acquire the Wessen Group, a Russian wiring accessories manufacturer, from Ahlström Capital for an undisclosed amount.

Wessen, which manufactures switches and sockets, posted revenues of roughly $33 million last year, 90 percent of which came from sales to Russia’s residential construction market. The company employs about 1,800 people in a factory in Kozmodemiansk and seven sales agencies in Russia and sells through more than 3,000 distributors and retailers in that country, Ukraine and Kazakhstan.

Schneider said the deal gives it a footprint in Russia’s low-voltage installation market, which it said is expected to grow 15 percent a year for the next five years.

"The acquisition of Wessen will give a unique opportunity to capture growth in one of the most dynamic residential markets in the world. It will also … accelerate our development in emerging countries, which already accounted for 32 percent of Schneider Electric’s sales in 2007," international operating division executive vice president Christian Wiest said.

The deal is expected to close during the second quarter.

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