Legrand (company)
Encyclopedia
Legrand is a French industrial
group historically based in Limoges
in the Limousin region
and a world leader in products and systems for electrical installations and information networks.
In 2011, Legrand is world no. 1 for switches and sockets with 19% of the global market and world no. 1 in cable management (15% of the global market), generating 75% of its turnover
internationally. The company is market leader in at least one of its main areas of business in 27 countries.
The Group is also developing its ranges around sustainable development
and energy saving with a protection range for photovoltaic installations and a lighting control range.
workshop was set up on the route de Lyon in Limoges
(in France's Limousin region
). Manufacturing subsequently gradually diversified into electrical equipment
. At that time, before the appearance of plastic, porcelain was the best available insulating material.
In 1949, following a factory fire, the decision was made to concentrate exclusively on electrical wiring devices (switches and sockets). The company very quickly extended its range to cover protection products (fuse-holders and circuit breakers, etc.), cable management products (trunking and mini-trunking), emergency lighting, etc.
Legrand since made 120 targeted acquisitions all around the world, thus becoming a world leader in electrical wiring devices with more than 150,000 product items, bases in 70 countries and sales in 180 countries in 2006.
Some notable dates :
1966 : First subsidiary outside France established in Belgium
.
1977 : Development continues outside Europe with the takeover of Pial in Brazil
.
1984 : First subsidiary in the United States
with Pass & Seymour..
1989 : Acquisition of Bticino
, the Italian
No. 1 in electrical equipment.
1996 : Legrand strengthens its presence in emerging countries with the acquisitions of Fael in Poland
, Luminex in Colombia
and MDS in India
.
1998 : Acquisition of Ortronics, an American leader in structured cabling and VDI.
2000 : Acquisition of Wiremold in the United States
(doubling the Group’s size there) as well as Quintela and Tegui in Spain
.
2005 : Acquisition of ICM GROUP (KZ and Cablofil brands), world leader in wire mesh cable trays.
2006 : Acquisition of the electrical wiring devices division of TCL China (No. 1 in China
) and Shidean, Chinese leader in audio and video door entry systems. Acquisition of Vantage Controls, American lighting control specialist.
2007 : Acquisition of HPM, No. 2 in electrical wiring devices in Australia, and Kontaktor, the leading Russian manufacturer of power circuit breakers. In the same year, Legrand took over MACSE, the Mexican leader in cable trays, UStec, American specialist in residential networks, TCL Wuxi, Chinese specialist in modular circuit breakers and Alpes Technologies (Annecy, France), specialist in energy compensation and measurement.
2008 : Acquisition of PW Industries, an American cable tray specialist; HDL, the No. 1 in Brazil in residential access control (entry phones); Estap, the Turkish leader in VDI (Voice Data Image) enclosures, and Electrak, UK specialist in ground-laid cable trays.
2009 : Like everyone else in the electrical industry, Legrand is severely affected by the economic crisis. The Group sees a 15.6% fall in its turnover (to €3.6 billion). The Group still manages to maintain its operating margin at 17.6%, as against 17.7% in 2008. A return to growth is forecast for the second half of 2010
2010 :
2011 :
November 2011: Moving too Prestons,New South Wales With HPM
At the end of 2006, the minority shareholders (banks and institutions) sell their holding via an accelerated private institutional placement, thereby taking traded shares to 35% of the capital and increasing the share’s liquidity.
Industry
Industry refers to the production of an economic good or service within an economy.-Industrial sectors:There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming; the secondary sector, involving refining, construction,...
group historically based in Limoges
Limoges
Limoges |Limousin]] dialect of Occitan) is a city and commune, the capital of the Haute-Vienne department and the administrative capital of the Limousin région in west-central France....
in the Limousin region
Limousin (région)
Limousin is one of the 27 regions of France. It is composed of three départements: Corrèze, Creuse and the Haute-Vienne.Situated largely in the Massif Central, as of January 1st 2008, the Limousin comprised 740,743 inhabitants on nearly 17 000 km2, making it the second least populated region of...
and a world leader in products and systems for electrical installations and information networks.
In 2011, Legrand is world no. 1 for switches and sockets with 19% of the global market and world no. 1 in cable management (15% of the global market), generating 75% of its turnover
Turnover
-Business:*Turnover is sometimes a synonym for revenue , especially in European and South African usage.Services sold by a company during a particular period of time....
internationally. The company is market leader in at least one of its main areas of business in 27 countries.
The Group is also developing its ranges around sustainable development
Sustainable development
Sustainable development is a pattern of resource use, that aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for generations to come...
and energy saving with a protection range for photovoltaic installations and a lighting control range.
History
The company's origins date back to 1860 when a Limoges porcelainLimoges porcelain
Limoges porcelain designates hard-paste porcelain produced by factories near the city of Limoges, France beginning in the late 18th century, but does not refer to a particular manufacturer.- History :...
workshop was set up on the route de Lyon in Limoges
Limoges
Limoges |Limousin]] dialect of Occitan) is a city and commune, the capital of the Haute-Vienne department and the administrative capital of the Limousin région in west-central France....
(in France's Limousin region
Limousin (région)
Limousin is one of the 27 regions of France. It is composed of three départements: Corrèze, Creuse and the Haute-Vienne.Situated largely in the Massif Central, as of January 1st 2008, the Limousin comprised 740,743 inhabitants on nearly 17 000 km2, making it the second least populated region of...
). Manufacturing subsequently gradually diversified into electrical equipment
Electrical equipment
Electrical equipment includes any machine powered by electricity. They usually consists of an enclosure, a variety of electrical components, and often a power switch...
. At that time, before the appearance of plastic, porcelain was the best available insulating material.
In 1949, following a factory fire, the decision was made to concentrate exclusively on electrical wiring devices (switches and sockets). The company very quickly extended its range to cover protection products (fuse-holders and circuit breakers, etc.), cable management products (trunking and mini-trunking), emergency lighting, etc.
Legrand since made 120 targeted acquisitions all around the world, thus becoming a world leader in electrical wiring devices with more than 150,000 product items, bases in 70 countries and sales in 180 countries in 2006.
Some notable dates :
1966 : First subsidiary outside France established in Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
.
1977 : Development continues outside Europe with the takeover of Pial in Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
.
1984 : First subsidiary in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
with Pass & Seymour..
1989 : Acquisition of Bticino
Bticino
Bticino S.p.A. is an Italian metalworking company that operates in the field of electrical low voltage equipment used to residential, employment and production...
, the Italian
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
No. 1 in electrical equipment.
1996 : Legrand strengthens its presence in emerging countries with the acquisitions of Fael in Poland
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
, Luminex in Colombia
Colombia
Colombia, officially the Republic of Colombia , is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the...
and MDS in India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
.
1998 : Acquisition of Ortronics, an American leader in structured cabling and VDI.
2000 : Acquisition of Wiremold in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
(doubling the Group’s size there) as well as Quintela and Tegui in Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
.
2005 : Acquisition of ICM GROUP (KZ and Cablofil brands), world leader in wire mesh cable trays.
2006 : Acquisition of the electrical wiring devices division of TCL China (No. 1 in China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
) and Shidean, Chinese leader in audio and video door entry systems. Acquisition of Vantage Controls, American lighting control specialist.
2007 : Acquisition of HPM, No. 2 in electrical wiring devices in Australia, and Kontaktor, the leading Russian manufacturer of power circuit breakers. In the same year, Legrand took over MACSE, the Mexican leader in cable trays, UStec, American specialist in residential networks, TCL Wuxi, Chinese specialist in modular circuit breakers and Alpes Technologies (Annecy, France), specialist in energy compensation and measurement.
2008 : Acquisition of PW Industries, an American cable tray specialist; HDL, the No. 1 in Brazil in residential access control (entry phones); Estap, the Turkish leader in VDI (Voice Data Image) enclosures, and Electrak, UK specialist in ground-laid cable trays.
2009 : Like everyone else in the electrical industry, Legrand is severely affected by the economic crisis. The Group sees a 15.6% fall in its turnover (to €3.6 billion). The Group still manages to maintain its operating margin at 17.6%, as against 17.7% in 2008. A return to growth is forecast for the second half of 2010
2010 :
- The company returns to growth. Sales are up by 8.7%, operating income leaps by 35.5% and net income by 44.3% to €418.3 million. The Group’s operating margin reaches previously unseen levels: 20.2%2.
- Creation of the EV PLUG alliance between Legrand, Schneider ElectricSchneider ElectricSchneider Electric is a French global company. It was founded in 1836 by two brothers, Eugène and Adolphe Schneider.In the first part of the 20th century, Schneider et Cie associated itself with Westinghouse Systems, a major international electrical group at the time. The group began manufacturing...
and Scame (ItalyItalyItaly , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
) to create a common, dominant standard in EuropeEuropeEurope is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
for electric vehicleElectric vehicleAn electric vehicle , also referred to as an electric drive vehicle, uses one or more electric motors or traction motors for propulsion...
charging systems. - Resumption of the acquisitions strategy with the takeover of Inform in TurkeyTurkeyTurkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
(leader in UPS) and of Indo Asian Switchgear in IndiaIndiaIndia , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
(specialist in modular circuit breakers). December 2010: takeover of the Italian company Meta System Energy, specialist in UPS.
2011 :
- Takeover of the US company Electrorack, specialist in VDI (Voice, Data, Image) enclosures, and Intervox Systèmes, French leader in assisted living for dependent persons.
- In April, Legrand strengthens its position in emerging markets and the energy security market with the acquisition of SMS, Brazil’s No. 1 in UPS.
- In May, the takeover of the American company Middle Atlantic Products (MAP - 520 employees and sales of $107 million), a company specialising in digital infrastructures (enclosures for audio and video applications), enables Legrand to strengthen its offering in this niche to customers in the hotel and conference centre market. In the last 12 months, Legrand has made seven acquisitions totalling additional sales of €300 million.
November 2011: Moving too Prestons,New South Wales With HPM
Stock market
- 1970 : listed on the Paris stock exchange for the first time.
- 2001 : friendly share exchange offer by Schneider ElectricSchneider ElectricSchneider Electric is a French global company. It was founded in 1836 by two brothers, Eugène and Adolphe Schneider.In the first part of the 20th century, Schneider et Cie associated itself with Westinghouse Systems, a major international electrical group at the time. The group began manufacturing...
for the whole of Legrand’s capital. Vetoed by the European CommissionEuropean CommissionThe European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....
due to the risk of distortion of competition. As the exchange of shares had already taken place, Schneider was obliged to resell Legrand. - 2003 : purchase of the entire share capital by the investment funds Kohlberg Kravis Roberts (KKR) and Wendel Investissement. Legrand is withdrawn from the quoted market.
- 2006 : return to the stock marketStock marketA stock market or equity market is a public entity for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.The size of the world stock market was estimated at about $36.6 trillion...
with 20% of the capital or 57.7 million new shares for an additional capital of €1 billion. KKR and Wendel Investissement remain majority shareholders, each holding 30% of shares, while 16% are held by minority shareholders and 5% by management and employees.
At the end of 2006, the minority shareholders (banks and institutions) sell their holding via an accelerated private institutional placement, thereby taking traded shares to 35% of the capital and increasing the share’s liquidity.
- 2007: Legrand welcomes Thierry de la Tour d’Artaise, CEO of Groupe SEB, and Gérard Lamarche, CFO of Groupe Suez, to its board of directors.
- 2008: End of the shareholder pact between KKR and Wendel Investissement. Rumours of a possible takeover of Legrand by a competitor (Siemens, ABB or General Electric) abound. In April 2008, KKR and Wendel Investissement decide to renew their shareholder pact until 2012.
Management
- François Grappotte (born in 1936 in ReimsReimsReims , a city in the Champagne-Ardenne region of France, lies east-northeast of Paris. Founded by the Gauls, it became a major city during the period of the Roman Empire....
): CEO from 1983 to 2006, honorary chairman of the board of directors since 2006. - Gilles SchneppGilles SchneppGilles Schnepp, is a French corporate senior executive. He is married to Ms Blandine Favre-Gilly and has three children: Paul, Adrien and Marie....
(born in 1958 in LyonLyonLyon , is a city in east-central France in the Rhône-Alpes region, situated between Paris and Marseille. Lyon is located at from Paris, from Marseille, from Geneva, from Turin, and from Barcelona. The residents of the city are called Lyonnais....
): CEO since 2006, joined the company in 1989, with a degree in business studies, ex vice-president of the American merchant bank Merrill Lynch France.