Energy management and automation specialist, Schneider Electric has agreed to acquire Asco Power Technologies (ASCO), a leading company in the automatic transfer switch (ATS) market for a consideration of $1,250m in an all cash transaction. The acquisition enhances Schneider Electric’s EcoStruxure Power Platform in key markets and segments, the company claims.
ASCO currently has around 2,000 employees, mainly based in North America, and operates seven manufacturing sites. Company revenue in 2016 reached $468m.
Founded in Baltimore, ASCO has a long history in power management first introducing ATS in 1925 and later expanding into surge, loadbanks, and fire pump and control applications. ASCO’s products are sold under the brands of ASCO, Firetrol, Avtron, Froment. And since December 2016, the company has been operating as an autonomous part of Vertiv, formerly Emerson Network Power.
ASCO is considered a market leader in power source management for critical buildings in North America. ATS automatically transfers critical loads from the primary source of power to the back-up power source in the event of a power outage. It requires compliance with specific technical regulation standards. Schneider Electric says it is the market leader in the ATS market in China. Both companies also operate in the ATS market in the rest of the world. With this acquisition Schneider Electric suggests that it has become the global market leader in ATS.
With the addition of the ASCO portfolio, Schneider Electric’s EcoStruxure Power Platform is further enhanced in North America with additional opportunities in the rest of the world, the company says. The acquisition, a statement suggested, further enhances Schneider Electric’s position in healthcare, financial services, datacentres and other critical buildings.
The market for ATS presents attractive long-term growth opportunities as more commercial and industrial customers move towards autonomous or multi-source power management. This trend is driven by a more decentralized power generation world, core to Schneider Electric’s strategic focus.