Schneider’s solid state steal

Schneider Electric announced today the acquisition of US-based Silicon Power Corporation’s solid state relay assets, sold under the Crydom brand name, for $71 million.

A major player in semiconductor switching technology, Crydom leads the market in the United States, where it generates 60% of total sales, and enjoys strong positions in Europe, especially in the United Kingdom and Germany. In 2005, the solid state relay business is expected to achieve sales of around $30 million and operating profit close to $8 million.

Solid-state technology, which offers high performance in terms of product durability and reduction in energy consumption, is particularly well suited to thermal regulation, lighting management, and noiseless applications in the buildings and machines markets.

For Schneider Electric, the solid state relay business offers ‘significant potential thanks to its dynamism (market growth above 5% a year on average), and strategic fit with the company’s existing operations in Industrial control’.

Subject to regulatory approval and other customary conditions, the transaction should be finalised in the first quarter of 2006.