Invensys sells Advanced Building Systems EMEA for US$150 million (£81 million)

Invensys sells Advanced Building Systems EMEA for US$150 million (£81 million)

Invensys plc announces that it has signed an agreement to sell the majority of its Advanced Building Systems operations in Europe and the Middle East (“ABS EMEA”) to Schneider Electric SA of France for a gross cash consideration of £81(1) million.

This disposal follows the Group’s previously stated intention of exiting the contracting and services part of its building management systems (“BMS”) operations within its Controls business and focussing instead on becoming a key supplier of products and systems to the BMS industry. The ABS operations in the rest of the world, which are headquartered in Rockford, IL, will be working in partnership with the buyer to sell ABS products and services into EMEA territories.

ABS EMEA is the leading provider of BMS in the UK under the Satchwell brand name and has a strong presence across the rest of Europe and the Middle East. The transaction includes Satchwell in the UK, Atmostech in Finland, Controlli in Italy, Messner in Germany and a number of other businesses operating under the Satchwell name across Europe and Middle East.

In the year ended 31 March 2005, the ABS EMEA businesses being disposed of reported sales of £94 million and operating profit(2) of £5 million. The net operating assets of these businesses at 31 March 2005 were £25 million. Of the £94 million of divested revenue, £68 million was contracting & services and £26 million related to products. The ABS operations in the rest of the world had sales of £130 million.

The transaction is subject to customary regulatory approvals and is expected to complete by the end of July. Proceeds from this disposal will be applied towards satisfying the Group’s liabilities.

Ulf Henriksson, Chief Executive Designate of Invensys plc, commented:

“This is a deal that makes sense strategically for both Invensys Controls and its subsidiary ABS business. It also makes sense financially."

Contact:
Invensys plc

Steve Devany tel: +44 (0) 20 7821 3758

Maitland

Emma Burdett / Fiona Pipertel: +44 (0) 20 7379 5151

Notes:
(1) Gross consideration of US$150 million converted at US$1.85/£1
(2)Before exceptional items.

About Invensys plc

Invensys is a global automation, controls and process solutions Group. Its products, service expertise and ongoing support enable intelligent systems to monitor and control processes in many different environments. Leading companies in a wide range of industries rely on Invensys to help them perform with greater efficiency, safety and cost-effectiveness.

The Invensys Group is made up of five businesses: Process Systems, APV, Eurotherm, Rail Systems and Controls. The Group is headquartered in London and is listed on the London Stock Exchange, with 35,000 employees working in 60 countries.

About Schneider Electric SA

Schneider Electric is the world's power and control leader. Through its world-class brands, Merlin Gerin, Square D and Telemecanique, Schneider Electric manufactures and markets a comprehensive range of products and services for the residential, buildings, industry, energy and infrastructure markets. Schneider Electric has 85,000 employees worldwide, operations in 130 countries and recorded sales of €10.4 billion in 2004 through the 13,000 sales outlets of its distributors.