Dec 8 2005
The Siemens Automation and Drives (A&D) Group has signed an agreement for the takeover of Electrium based in Cannock, West Midlands. Electrium is a leading vendor of electrical installation systems in the United Kingdom with long established access to the important markets in the near and Middle East. The company employs around 700 people at four sites. Sales in fiscal year 2004/2005 (March 31) were ₤74.5 million (approximately €109 million). The sellers are Electrium's management and Lloyds TSB Development Capital Ltd which each own 50 per cent of the company. All parties have agreed not to disclose the purchase price. The transaction is conditional on approval by the relevant authorities.
"This is an important step for the global positioning of Siemens in electrical installation systems. The acquisition of this profitable vendor puts Siemens among the top three vendors in the UK. In addition, the strong Electrium brand is an outstanding supplement to our portfolio in the export markets of the near and Middle East", said Godehardt Schneider, Head of the Electrical Installation Technology Division at Siemens Automation and Drives.
The market for electrical installation systems is characterized by regional standards with strong market leaders. For this reason, Electrium's name and product brands will be retained along with the established distribution channels when it is acquired by Siemens.
"Siemens will continue to run the Crabtree, Wylex and Volex brands and supplement our portfolio with their products. In addition, Electrium's opportunities for growth are increased through access to Siemens' resources for research and development, logistics, and global sales and marketing. These are the ideal prerequisites for continuing the growth of recent years", says Christopher Thomas, CEO of Electrium who will continue to manage the business.
In the course of the acquisition, Electrium will become a subsidiary of Siemens plc. The market for electrical installation systems in the UK is approximately ₤650 million (€960 million). Electrium is among the leading vendors of British Standards wiring accessories, circuit protection systems and switches and sockets. The four sites are in Cannock and Brownhills in the West Midlands and Hindley Green and Wythenshawe in the North West of England.
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