Xantrex Technology Inc. (TSX:XTX) announced that it has entered into a definitive agreement to be acquired by Schneider Electric for a cash purchase price of CDN$15.00 per share, representing a premium of approximately 55% over the "undisturbed" average closing price of Xantrex’s shares on the Toronto Stock Exchange for the 30 day period ending July 21, 2008 when the company disclosed that it was in exclusive negotiations.
The all-cash transaction has an equity value of approximately $500 million.
As a condition to the sale of Xantrex to Schneider Electric, Xantrex will divest its programmable power business. Xantrex also announced that it has entered into a definitive agreement for the sale of its programmable power business to AMETEK, Inc.
"These transactions maximize value for Xantrex’s shareholders," said Mossadiq S. Umedaly, Xantrex’s Chairman. "Becoming a part of Schneider Electric is an exciting development for our business. Schneider Electric’s outstanding global distribution, service and supply chain infrastructure combined with our world class technology and products will enable us to deliver more of our products to customers worldwide, making this a powerful combination. In addition, our programmable power division is highly complementary to AMETEK’s Power Instruments business."
Mr. Umedaly added, "These transactions also represent a significant opportunity for Xantrex’s 800 employees in Canada, U.S., Europe, and Asia. With the global growth opportunities that this represents, we believe our employees will have excellent career opportunities."
Jean-Pascal Tricoire, Chairman of the Management Board and CEO of Schneider Electric, commented, "The acquisition of Xantrex will give us a unique opportunity to capture growth in the dynamic renewable energy market. The addition of Xantrex will accelerate our development as a total solutions provider and extend our position as the global specialist in energy management."
Mr. Frank Hermance, Chairman and CEO of AMETEK, Inc. notes, "The acquisition of Xantrex’s Programmable business expands our position in the niche market for programmable power sources and provides us with further opportunities for growth in the highly attractive electronic test and measurement equipment market."
About Xantrex
Xantrex Technology Inc. is a leader in the development, manufacturing and marketing of advanced power electronic products and systems for the renewable, programmable, and mobile power markets. The company’s products convert and control raw electrical power from any central, distributed, renewable, or backup power source into high-quality power required by electronic equipment and the electricity grid. Xantrex is headquartered in Vancouver, Canada, with facilities in the United States, Germany, Spain, England, and a joint venture in China.
About Schneider Electric
Global specialist in energy management, Schneider Electric offers integrated solutions making energy safe, reliable, efficient and productive in the energy & infrastructure, industry, data centres & networks, buildings and residential markets. With sales of 17.3 billion euro in 2007, the company’s 120,000 employees in 102 countries help individuals & organisations make the most of their energy.
About AMETEK, Inc.
AMETEK, Inc. is a leading global manufacturer of electronic instruments and electromechanical devices with annualized sales of more than $2.5 billion. AMETEK’s Corporate Growth Plan is based on Four Key Strategies: Operational Excellence, Strategic Acquisitions & Alliances, Global & Market Expansion and New Products. AMETEK’s objective is double-digit percentage growth in earnings per share over the business cycle and a superior return on total capital.
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