Schneider Electric ready to pay 4 billion euros to become 100% Aveva – 13/09/2022 at 10:36

(AOF) – The French group Schneider Electric is close to an agreement to buy about 41% of the capital of Aveva that it does not hold, for about 3.5 billion pounds (4.04 billion euros). ), according to Sky News. The tricolor company will have to clarify its position before September 21. An agreement is therefore on the point of being concluded. According to the British television channel, the boards of directors of the two companies are discussing a price of more than 30 pounds per share of Aveva. This values ​​the British group around 9 billion pounds (10.4 billion euros).

Under UK mergers and acquisitions law, Schneider will have to declare whether or not it intends to submit a bid by September 21 at 4:00 pm GMT.

Already a subsidiary of Schneider Electric since 2018, Aveva had in particular acquired the American Osisoft at the end of 2020, for the sum of 5 billion dollars (4.2 billion euros).

AOF – LEARN MORE

Key points

– World leader in equipment for the digital transformation of energy management and the empowerment of buildings, infrastructure and industry;

– A turnover of 29 billion euros, divided between products (59% of sales), systems (23%) and software and services (18%);

– Penetration of “new economies” that account for 53% of turnover, including 31% for Asia-Pacific, ahead of North America (28%) and Western Europe (25%);

– Business model to meet the needs of 4 markets – construction, data centers, infrastructures and industries – through digital service offers that combine energy, automation and security of the ecosystem through the cloud, and through a complete management of the life cycles of site-by-site management and migration to an integrated enterprise;

– Fractional capital (2.53% and 4.77% of voting rights for the Caisse des dépôts), Jean-Pascal Tricoire being President and CEO of the 15-member Board of Directors;

– A healthy financial position with net debt of 7.1 billion euros and free cash flow of 2.8 billion euros.

Challenges

– “Life is active” strategy:

– production in 4 hubs, Europe, United States, China and, from 2021, India,

– reinforcement of digitization, from design to production then maintenance and increase of online sales,

– Objectives 2022-2024: annual turnover growth between 5 and 8%, free cash flow of 4 billion euros and growth to 17% of the operating margin from 2022;

– Innovation strategy based on the Design Thinking & Lean Start Up methodology:

– total digitization of the supply chain and migration of site-by-site management to an integrated company,

– EcoStruxure platform for connected products,

– strategic partnerships, with Planon (data management and building analysis), Carlyle (AlphaStruxure joint venture for intelligent infrastructures),

– support for start-ups (200) with the SE Ventures fund and incubators,

– portfolio of 19,000 patents;

– Impact of the 2021-2025 environmental strategy that aims at zero net CO2 emissions by 2030:

– climate: 8/10 of revenue from revenue with a positive impact on the environment, support for customers to avoid 800 Mt of CO2 emissions and 1000 suppliers to halve their CO2 emissions,

– resources: 50% sustainable raw materials and 100% recycled cardboard packaging;

– Remodeling of the portfolio – external growth of the software offer and the technological offer to energy suppliers and dispositions from 1.5 to 2 billion euros between 2021 and 2022;

– Strong ambitions in services whose growth will be double that of the group.

Challenges

– Tensions on the supply chain accentuated by the restrictions in China (the 2nd market of the group), the shortage of electronic components for industrial automation and high inflation, compensated by the increase in prices and the multiplication of the stock centers;

– Russia-Ukraine war: sale of activities in Russia (2% of revenues) to local management, with an impact of 300 million euros on the budget;

– Merger with the subsidiary IGE+mai and full integration of its activity;

– After a strong start in the 1st quarter, confirmed the 2022 objective of revenues from 7 to 9% and an operating margin from 30 to 60 basis points;

– Dividend 2021 at €2.90 and share buyback plan between 0.9 and 2 billion.

Great prospects with green hydrogen for the electricity sector

The French hydrogen plan of 7 billion euros, which has been increased to 9 billion, aims to develop an industrial sector for the production of low-carbon hydrogen. Gimélec, the group of companies in the digital electronics sector in France, has identified strong benefits for electrical equipment manufacturers. For its members, the economic benefits are estimated at 10 billion euros by 2030, after an additional 20 billion for the period from 2030 to 2040, mainly for the sector of manufacturers of digital electronic equipment (from transformers to control systems). This will lead to massive recruitment, especially in the places where hydrogen development efforts will be concentrated, in the Mediterranean and in the Seine valley.

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