The news has been spreading around the Internet for several days: the trend of large groups acquiring new companies instead of developing new sectors (thus also merging value, already-trained personnel and presence in the territory) is continuing. But here we interpret an additional interesting ingredient: an ever-greater blend of the electronic world and AV, of Home and Pro
Legrand, a French group that specializes in products and systems for electrical installations and information networks (and to which the Italian company BTicino is a subordinate), on 28 June, 2017 signed an agreement for the acquisition of Milestone AV Technologies, a leading company in the production of AV infrastructures. The deal, at a value of 950 million dollars, strengthens Legrand’s position in the field of digital infrastructures, both for the consumer and professional markets. The operation heads in the direction of an interaction between the two environments and is part of a wider phenomenon already visible in earlier examples (Samsung with Harman Group, just to name the most recent), in which large groups tend to incorporate various existing brands in a unitary coordination.
Milestone, moreover, comes from a similar history: a leading company in the American market of AV infrastructures, it built its success on the acquisition of excellent brands, such as Chief (commercial AV support), Sanus (residential AV support) and D-Lite (projection screens). The role that Legrand has won over time in the American market through the brand Middle Atlantic Products will permit Milestone, which is at home in the USA, to provide American clients with scalable and end-to-end offers, in line with recent research on the needs of integrated media systems (security, ease of installation, reliability). Among the other reasons for the acquisition, as a matter of fact, we find the synergies of medium-term sales through a greater and better presence in the territory and near clients, or the exploration of new distribution channels and in new geographical zones, or still reasons of financial rationalization. “The acquisition of Milestone allows Legrand to pursue its progressive strengthening in digital infrastructures,” declared Gilles Schnepp, President and CEO of Legrand, “more specifically in high-end AV infrastructures in the United States, where Legrand is already a leading company. […] Milestone’s priority position, very well-known brands, business supported by technological and social mega-trends, a client-centric approach, continuous innovation, politics of corporate social responsibility…all are assets of primary importance that make this acquisition a step of great value, which perfectly combines with all of Legrand’s ‘fundamentals.’”
The two companies’ choice, then, seems to head in the direction of a progressive blend of HomeAV and ProAV environments, which would aspire to reach the prospective spokespersons of both environments, combining high-end production with operations that are more typically customer-centric (employees for direct sale and technical support, client training, a capillary distribution system). In any case, the products of both Milestone and of Middle Atlantic will remain on the market, reassures Scott Gill, CEO of Milestone, who clarifies the meaning of the operation: “bringing together Milestone and Middle Atlantic underneath Legrand will allow us to offer our clients a greater range of complementary AV brands, developing combined best practices in order to offer continuous innovation.”
For the complete press release click HERE
for the video of the teleconference about the news of the acquisition click HERE
www.legrand.com
