Electrical equipment majors, Numeric Power Systems Ltd and Legrand Group today announced that both the parties have signed definitive agreements whereby Legrand Group will acquire the UPS division of Numeric Power Systems Ltd. The association which is subject to customary statutory & regulatory approvals has already been recommended unanimously by the Board of Directors of Numeric Power Systems Ltd.
Commenting on the association, R. Veeramani, Chairman, Numeric Power Systems Limited, said, The board of Directors has approved Legrand’s offer for the purchase of the UPS division of Numeric Power Systems. The Iisted Indian Company will continue to operate its other existingbusiness comprising of Alloy Steel Foundry, Iron Foundry, complete Solar (SPV) solutions in the areas of Roof top and EPC solutions where it plans to continue to pursue exciting business opportunities in India and overseas.
The board will be recommending a special dividend to the shareholders out of the proceeds of the sale of the UPS business, added Veeramani.
Commenting on the association with Legrand, R. Chellappan, Managing Director, Numeric Power Systems Limited, said, Legrand is a well known name, both in the global and Indian markets, known for its high quality products. I am extremely happy to note that we have a partner who shares our values and commitment to our global customers. I am confident that with the support of the Legrand team, Numeric UPS, the leading brand for UPS in India, will further accelerate its growth in India and overseas by increasing its product bandwidth, expanding applications and providing access to new geographical markets, for the benefit of its customers and employees.
Speaking of this offer, Yves Martinez, Managing Director, Legrand India, said, “It is our objective that Numeric, Legrand and Indo Asian switchgear will keep their current network, product catalogue, teams, commercial terms, and continue to develop fast on their own. We intend to accelerate the growth rate of all brands, by continuing sustained growth investments – such as the launch of new products, the addition of commercial manpower, the international expansion, etc. “.
The 3 brands are highly complementary, with Numeric being the premier Indian company for UPS with a high quality product offering and extensive network of more than 1,200 service people to provide its customers with power continuity whilst Legrand and Indo Asian holds strong positions in both the switchgear products and premium wiring devices. The association between those 3 brands will contribute to provide to their customers an even more comprehensive solution and service package.
Ambit Corporate Finance acted as investment bankers for Legrand on this transaction. Amarchand & Mangaldas & Suresh A. Shroff & Co were the legal advisors for Legrand and Universal Legal for Numeric Power Systems. Ernst & Young and Lakshmi Kumaran & Sridharan provided assistance on respectively financial due diligence and tax due diligence related matters on this transaction.
