Schneider Electric Acquires Outstanding Shares of Elau
In yet another purchase in the automation industry, I just received a press release noting the latest Schneider Electric purchase.
I only hope that this acquisition fares better than other acquisitions the company has made. Thus far, its acquisition of Japan's Digital (including U.S. brands Pro-face America and Xycom), a manufacturer of industrial personal computers, seems to be going well. However, its purchase of PC-based control supplier Steeplechase and subsequent merger of it into PC-based control company Think and Do forming Entivity didn't fare so well. Schneider never seemed to integrate the technologies into its portfolio and the company wound up being sold to Phoenix Contact.
Observers will be interested in seeing how this integration takes place. Will Schneider leverage Elau's products and expertise through its extensive distributor network? Will Elau representatives sell programmable controllers, motor starters and other industrial control products to the packaging machinery OEMs it serves? Will this affect major competitors--mainly Rockwell Automation, Bosch Rexroth and, increasingly, Siemens? I love good competition, even when I'm one of the competitors. Let's hope that this investment strengthens Elau and sharpens the competitive spirit of the others!
Here's an edited version of the press release:
Schneider Electric, based in Rueil-Malmaison, France, the minority shareholder of Elau AG, based in Marktheidenfeld, Germany, announced May 11 the acquisition of the outstanding shares of Elau. This acquisition is still subject to antitrust review.
According to the press release, Elau will leverage its identity and market leadership in packaging machinery automation to lead Schneider Electric's global packaging business strategy as an autonomous business unit with an approximately 25 percent annual growth target.
According to Patrik Hug, Elau executive vice president, international sales, "Joining forces with Schneider Electric gives our customers a complete solution with the staying power, the presence in growth markets and the breadth of peripheral products that our competitors cannot match."
This activity supports three key aspects of Schneider Electric's strategy:
Acceleration of growth in the packaging OEM machine market;
Widening of its offer in the motion control field; and
Strengthening of its presence in the European and North American industrial automation market.
Elau provides core technology that enables packaging machines to deliver the increased efficiency and flexibility demanded in the global packaging industry. Schneider Electric is a o 10 billion company that supplies an extensive range of quality electrical devices to implement automation throughout the enterprise.
6:41:35 AM 
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