France's Schneider Electric grabbing Xantrex

Vancouver-based Xantrex Technology (TSX: XTX), which manufactures advanced power electronic products and systems for the renewable, programmable, and mobile power markets, announced today that the bulk of the company will be acquired by France's Schneider Electric for approximately Cdn$500 million in cash.

The news comes less than a week after Xantrex said it was in exclusive negotiations for the sale of the firm, but did not disclose the buyer or the financial terms of the possible deal (see Xantrex Technology up for sale).

As a condition of the Schneider Electric deal, Xantrex will divest its programmable power business, selling the San Diego-based unit to Paoli, Penn.'s Ametek (NYSE: AME) for Cdn$120 million in cash. The $500 million sale price of Xantrex to Schneider Electric includes the expected proceeds from the sale of the programmable division Ametek.

"The acquisition of Xantrex will give us a unique opportunity to capture growth in the dynamic renewable energy market," said Jean-Pascal Tricoire, chairman of the management board and CEO of Schneider Electric.

"The addition of Xantrex will accelerate our development as a total solutions provider and extend our position as the global specialist in energy management."

Xantrex said its board of directors decided to explore strategic alternatives last year to maximize shareholder value. OCM Principal Opportunities Fund, which 24.4 percent of Xantrex has agreed to vote in favor of the Schneider Electric deal.

OCM is the largest shareholder of Xantrex and the only shareholder holding more than 10 percent of its outstanding common shares.

Xantrex said the sale of its programmable power business to Ametek is not contingent on the completion of the Schneider Electric transaction and is expected to close in the third quarter.

The sale to Schneider Electric is expected to close before the end of October.

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