Balfour Beatty to sell Andover Controls, other security businesses
May 20, 2004
PALATINE, Ill. - The U.K.-based building management firm that owns Andover Controls, Integral Technologies and Security International has decided to exit the security market and plans to sell those businesses to Schneider Electric for $403 million.
Balfour Beatty announced the sale this week. Company officials said Balfour Beatty wants to focus on its core engineering and construction business and the building automation and security business needs more attention.
According to Dave Wathen, president and chief executive officer of Balfour Beatty, the move follows significant consolidation in the U.S. building management controls market. He said the business requires Ã¢â‚¬Å“a specialist owner in order to continue to compete successfully under the new market structure, which is emerging.Ã¢â‚¬Â
For Schneider Electric, the deal marks another opportunity for it to expand its reach in the security market. Last year, it bought TAC AB, a Swedish company with an Americas division headquartered in Dallas.
The two transactions are similar in size in terms of the price tag. Schneider paid $438 million for TAC, a company with $400 million in annual sales. Andover, Mass.-based Andover Controls, on the other hand, reported $169 million in revenues and $28 million in EBIT for 2003.
Schneider Electric is the worldÃ¢â‚¬â„¢s largest manufacturer of circuit breakers and is based in France. The company operates its U.S operations in Palatine, Ill.