BOSTON - July 31, 2006 - Schneider Electric, parent company of TAC, today announced the completion of the acquisition of Invensys Building Systems (IBS), a division of Invensys Controls with operations in North America and Asia. IBS will merge with TAC, a world leader in building automation, security systems and energy solutions. This follows the merger with Invensys ABS EMEA in 2005; revenues for the combined company are forecasted to reach approximately US $1.3 billion in 2006.
The combination of TAC and IBS will have a positive impact on their customers, who will benefit from:
- Evolving product lines with integrated, IP-based open platforms
- Complete building solutions that include HVAC, Security, Field Devices, Fire
- and Safety, Lighting Control, Machine Automation and Power Monitoring and
- Sales and Service offices in 500 locations across 80 countries
- Lifecycle building services including both traditional and extended services
“This acquisition is a key part of Schneider and TAC’s growth strategy, and the combination of TAC and IBS brings a formidable player to the market,” said Arne Frank, chairman and chief executive officer of TAC. “The merger expands TAC’s distribution capability in North America and Asia, and takes the Schneider Electric building automation platform to a new scale. We also believe IBS’s installed base, independent field offices, customer relationships, product portfolio, employees and core competencies bring important value to TAC.”
The merger of TAC and IBS produces a number of strategic benefits for the companies. These include:
- Provides significant revenue and cost synergies
- Adds renowned product names and brands to the TAC line
- Expands distribution channels
- Enhances TAC’s experienced management team
Furthermore, the acquisition of IBS expands TAC into markets such as refrigeration, original equipment manufacturing, and wholesale. TAC will also offer additional branded and manufactured lines of controllers, peripherals and field devices, and security products providing a competitive, complete solution portfolio for its customers.
“IBS has more than 100 years of experience in the design, manufacture and installation of heating, ventilating and air conditioning (HVAC) control products and systems and, like TAC, is a leading provider of open, integrated building automation solutions and services,” said David Gill, vice president and general manager of IBS. “Moving forward, TAC will continue a product strategy that supports open integrated systems, backward compatibility, future adaptability, simplicity of engineering and operation, innovation, and a platform for extended services.”
IBS offers an extensive line of building management systems, controls and components, including valves, actuation devices, sensors, interfaces and the applications that link these products and other building systems together. IBS products that now will be offered by TAC include product names Barber-Colman, Com-Trol, Crysalis, Erie, DuraDrive, EconoDrive, and more.
The merger of IBS with TAC offers several financial benefits:
- Long-term financially strong owner in Schneider Electric
- Resources to pursue an aggressive expansion strategy
- Commitment to funding research and development
- Increase total available market
- Part of one of the fastest growing, most profitable companies in the industry
About Schneider Electric
Schneider Electric is the world’s power and control specialist. Through its world-class brands, Merlin Gerin, Square D and Telemecanique, Schneider Electric anticipates and satisfies its customers’ requirements in the residential, building, industry, energy and infrastructure markets. With 92,000 employees and operations in 130 countries, Schneider Electric generated sales of €11.7 billion in 2005 through 13,000 distributor outlets.
Invensys is a global automation, controls and process solutions group operating in more than 60 countries worldwide.
TAC is a leading provider of building automation solutions based on Open Integrated Systems for Building IT. TAC's mission is to provide added value through building environment services for indoor climate, security and use of energy, delivered with advanced technology to end users and property owners throughout the world. With over 80 years of experience in the HVAC, building automation and security arenas, TAC employs more than 4,500 people worldwide, with partners and branches in 80 countries.