Legrand Legrand

Interview

 Acquisitions are at the heart of Legrand’s growth.  

Loïc Roux
Executive VP, Corporate Development

  • 160

    companies acquired since 1954

  • 54

    acquisitions announced since year-end 2004

  • Over

    1.8bn

    in annual acquired sales since 2004

  • of which close to

    60 %

    in new business segments

  • and over

    30 %

    in new economies

Main recent acquisitions

Legrand has announced twelve acquisitions since January 2016.

Borri* **, an Italian three-phase UPS (Uninterruptible Power Supply) specialist, known for its customized solutions.

Finelite, an acknowledged US player in specification-grade linear lighting fixtures for non-residential buildings.

AFCO Systems Group, specialized in Voice-Data-Image (VDI) cabinets used by datacenters in North-America.

OCL, specialized in architectural lighting solutions for commercial and high-end residential buildings in the United States.

Solarfective, a Canadian specialist in natural light control for residential buildings.

CP Electronics, the UK leader in energy-efficient lighting control.

Trias*, an Indonesian specialist in cable management and distribution cabinets.

Jontek, a UK specialist in solutions for monitoring assisted-living platforms.

Luxul Wireless, the US leader in audio/video infrastructure products (wireless routers, access points and switches) for residential buildings and small- to mid-size commercial buildings.

Pinnacle Architectural Lighting, one of the US leaders in architectural lighting solutions for non-residential buildings.

Fluxpower in Germany and Primetech in Italy, both specialists in uninterruptible power supply (UPS).

* Joint-venture

** As Legrand holds 49% of equity, Borri will be consolidated on the equity method.

Legrand's history

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acquisitions–alongside innovation–one of
legrand's two growth drivers.

At Legrand acquisitions are made to fuel growth and expand its market share. Over time, Legrand has developed expertise in the acquisition process, and aims to pursue this strategy over the long term.

Targeted, self-financed acquisitions

Legrand takes a targeted, selective approach to external growth. The strategy of bolt-on acquisitions focuses on small to mid-size companies that complement the Group’s activities and have leading positions or proven technological expertise on promising markets. The pace of external growth stepped up in 2016 with eight companies acquired during the year, totaling annual sales of over €170 million, of which 80% with products that rank first or second in their markets, primarily in new business segments(1).

pinnacle

Acquisition: Pinnacle Architectural Lighting

In 2016 Legrand acquired Pinnacle Architectural Lighting, one of the US leaders in architectural lighting solutions for non-residential buildings. Legrand thus strengthened its positions on a market driven by regular adoption of new energy codes and by increased demand for energy-efficient solutions.

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luxul-wireless

Acquisition: Luxul Wireless

In 2016 Legrand strengthened its positions in digital infrastructures by acquiring Luxul Wireless, the US leader in audio/video infrastructure products (wireless routers, access points and switches) for residential buildings and small to mid-size commercial buildings. Luxul Wireless solutions are positioned at the high end of the market—an ideal complement to Legrand’s generalist offer of structured cabling for residential buildings. The move also consolidates the Group’s offer in the promising audio/video applications sector, where it is already a leader in the enclosures market since the acquisition of Middle Atlantic Products.

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cp-electronique

Acquisition: CP Electronics

In 2016 Legrand acquired CP Electronics, the UK leader in energy-efficient lighting control. CP Electronics solutions (motion detectors and lighting systems) round out Legrand’s offer for the commercial market in the UK, where the Group is already a market leader in overhead cable management, busbars and floor boxes.

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Experience and expertise

At Legrand, growth has historically been fueled by innovation with a steady stream of new, high value-added product launches and acquisitions. Since 1954 we have bought 160 companies in our core businesses, in complementary segments and in the most promising technological arease. And since year-end 2004, we have made 54 acquisitions representing annual acquired sales of over €1.8 billion, with close to sixty percent of that total from new business segments.

Seizing opportunities

Legrand teams are constantly on the lookout for new acquisitions, using their in-depth knowledge of local players to identify likely candidates in a fragmented market. This is one key to the success of the Group’s acquisition policy: staying close to the market makes it easier to locate and assess investment opportunities. Market contacts also make the acquisition process go more smoothly, and facilitate the docking process once a deal has been completed. In addition, a dedicated Corporate Development unit oversees all acquisitions, stepping in as needed to coordinate action by our various teams during the acquisition process.

A well established docking process

Over time, Legrand has set up a clearly defined process for integrating new acquisitions. The aim is to bring newcomers into the Group smoothly, harnessing all possible synergies while still enabling them to achieve their own growth potential

 



(1) New business segments include digital infrastructures, energy efficiency, home systems and assisted living.

Message of, the CEO

Chairman’s message

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Guide international

New Business Segments

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Guide international

New Economies

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Innovation

Innovation & new technologies

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2015 facts and figures

2016 Key figures

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The Legrand social networks

Legrand and the social networks

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History

History

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