Legrand hits record high after agreeing $1.1bn deal to acquire Avtron Power

Investing.com -- Legrand SA shares climbed to a record high after the electrical equipment maker announced a $1.125 billion enterprise value deal to acquire Avtron Power Solutions, strengthening its portfolio in energy transition-related products.

The stock hit a record high of €145.45 before paring gains and was last up 0.5% at €142.85 as of 08:55 GMT. 

Avtron provides load banks and power quality solutions used in sectors that require reliable power delivery, such as data centers, healthcare, renewable energy, and manufacturing.

The company employs about 600 staff, operates five manufacturing sites across North America and Europe, and is expected to generate nearly $350 million in revenue in 2025 with strong profitability.

For Legrand , with more than 70% of Avtron’s sales coming from the U.S., the deal gives the company a larger foothold in that market and broadens its offering in energy transition and other fast-growing sectors.

Following completion of the transaction, which remains subject to regulatory approval and customary closing conditions, Avtron will operate as a stand-alone unit within Legrand’s Electrical Wiring Systems Division under Ravi Ramanathan.

Current Avtron CEO David Cox will continue to lead the business.

“Avtron Power Solutions’ 75-year history of leadership, innovation, and commitment to customer service and satisfaction align with our cultural and customer-centric values,” said Brian DiBella, President and CEO of Legrand North and Central America.

“Avtron has a well-established, successful model for growth, which was developed and driven by an experienced leadership team.”

Legrand shares received a downgrade at Kepler Cheuvreux earlier this week, to Hold from Buy, citing valuations that it sees as stretched and expectations that are running ahead of company guidance.

Kepler analysts argued that much of the positive outlook is already reflected in the share price, particularly in the data center business, which is expected to remain a key driver of growth.