Edwards Systems on the block, according to report
November 11, 2004
SARASOTA, Fla. - General Electric and Schneider Electric are reported to be in hot pursuit of SPX Corp.Ã¢â‚¬â„¢s fire and security systems business Edwards Systems Technology.
The Wall Street Journal reported that the two conglomerates are interested in the $1.5 billion business unit, with a winning bidder possibly selected before the end of the year.
Jay Pinkert, director of communications for GE Security, could neither confirm nor deny reports that GE is interested in buying Edwards Systems Technology. Ã¢â‚¬Å“Any growth oriented company would be looking at opportunities in the marketplace,Ã¢â‚¬Â he said.
Word that SPX Corp. planned to place Edwards Systems Technology up for sale began circulating several months ago. The decision to sell the brand, according to Jack Mallon, managing director of Mallon Associates and a security industry analyst, follows a decline in SPX Corp.Ã¢â‚¬â„¢s stock price and earnings.
Ã¢â‚¬Å“Many observers of the company perceive the security piece not to be part of their core manufacturing operations,Ã¢â‚¬Â said Mallon.
GE Security and Schneider Electric have been steadily building their portfolio of companies in the security market. SchneiderÃ¢â‚¬â„¢s most recent acquisition was of Andover Controls, an access control and building automation business.
Officials from Edwards Systems Technology could not be reached for comment prior to press time for the Security Systems Newswire.