Archive press releases

On 22 December 2003, it was announced that Schneider Electric had agreed to acquire the majority shareholding in MGE UPS Systems ("MGE") it did not already own in a transaction which enabled LGV funds to double their original investment.

MGE, which is based in Grenoble, employs 2,900 staff through a network of 37 countries. It designs, manufactures and services a wide range of uninterruptible power supply systems which protect computers and other sensitive electronic equipment against electrical power distortions and interruptions. In spite of weak market conditions in the last two years, it has successfully managed to increase its world-wide market share above 10% as well as continue to improve its operating margin to 12.5%, one of the highest in the sector. In the year to September 2003, MGE generated sales of €497m and an operating profit of €62m.

LGV co-led the secondary buyout of MGE for €731m in 2000. Schneider Electric took a 32.3% holding in the company as part of this transaction.

The sale will enable LGV funds to double their investment and generate a satisfactory IRR. It demonstrates the benefits of the partnership approach adopted between financial investors, trade players, management and employees in a buyout, which has been a feature of a number of recent investments led by LGV.

The acquisition was completed on 10 February 2004 following receipt of clearance from the US and EU respective competition authorities.