Schneider Electric once again in talks to sell sensors subsidiary
11 Mar 2014
Schneider Electric yesterday confirmed that it was in talks to sell its US-based sensors subsidiary Custom Sensors & Technologies (CST), two years after it abandoned the sale due to market volatility.
The Rueil-Malmaison, France-based company was reacting to a report from French newspaper Les Echos, which said that Schneider Electric is in exclusive talks with private equity firms Carlyle Group and PAI Partners to sell the unit, but would retain a 30 per cent stake.
The sale may fetch the French electrical products maker around $900 million, the report added.
"I can confirm that Schneider is in talks with potential buyers," a company spokesman told Reuters, but declined to give more details.
The move comes after Schneider Electric abandoned the sale of CST in 2012 although it had received offers from both its present suitors and California-based chipmaker Avago Technologies. (See: Schneider Electric receives two buyout offers for sensors subsidiary CST)
Moorpark, California-based CST is a specialist in sensing, control and motion products.
Through its brands, BEI Kimco, BEI Sensors, BEI PSSC, Crouzet, Crydom, Kavlico, Newall and Systron Donner Inertial, CST offers electronic sensors, controls, and actuators used in factory and industrial process automation, aerospace and defense equipment, and a wide range of transportation applications.
CST's products, which include DC motors, optical encoders, servo systems, and trackballs, help determine exact positions and link the actions of precision mechanisms, such as automotive stability-enhancement systems.
The company has operations across Europe, Asia, Latin America, Mexico, and the US. CST has about 4,700 employees globally and posted 2012 revenues of $604 million.
