Taiwan-based Yageo Corp., the world’s third largest multilayer ceramic capacitor (MLCC) supplier, has agreed to acquire Schneider Electric’s Telemecanique Sensors to help strengthen its specialty electronics component business.
Yageo and France-based Schneider, a leading player in the digital energy management and automation arena, entered into a binding commitment for the all-cash acquisition for 686 million euros, or about NT$21.4 billion, according to the company.
The transaction is expected to be completed in the first half of next year after securing regulatory approval, Yageo spokesman Andy Sung (宋志翔) said at a news conference Thursday.
Through the acquisition, Schneider Electric will grant the Taiwanese company a license to use the Telemecanique Sensors trademark, and Yageo will secure the relevant sensor patents from the French company, Sung said.
In a statement, Yageo said Telemecanique Sensors, a global leader in the design, development, and delivery of electromechanical and electronic sensors, posted sales of about 280 million euros in 2021, with some 70 percent of its revenues generated in North America and Europe.
According to Yageo, Telemecanique Sensors has built a broad portfolio of sensing solutions over its 90 years in business, such as high-end limit switches, proximity sensors and pressure sensors.
Its products are used in several fast-growing applications including the Internet of Things, industrial automation, Industry 4.0 and infrastructure.
“The proposed acquisition will be a major milestone for Yageo to further strengthen its position in the sensor market, which will be a significant growth driver for Yageo,” Yageo founder and Chairman Pierre Chen (陳泰銘) said in the statement.
“We will be able to deliver an even more comprehensive product range for our customers from passive components to a broad range of high-end electronic components,” Chen said.
Chen said Yageo expects to generate more than US$600 million a year in revenue from its sensing products, which would account for about 14 percent of the company’s total sales.
It was the second acquisition announced by Yageo in two weeks. It announced on Oct. 11 that it had agreed to buy Germany-based Heraeus Holding GmbH’s high-end temperature sensor subsidiary Heraeus Nexensos GmbH for 79.4 million euros in cash.
According to Yageo, Heraeus Nexensos is the global leader in premium platinum thin-film temperature sensors, which offer superior temperature ranges and high precision measurements.
In recent years, Yageo has sought growth through acquisitions, with the focus on high-end passive component development.
Among its previous acquisitions, Yageo acquired U.S.-based Kemet Corp. for US$1.64 billion in 2020 to cement its status in the global MLCC market after buying another U.S. company, Pulse Electronics Corp., for NT$22 billion (US$68.32 million) in 2018.
Trading of Yageo shares have been suspended on the Taiwan Stock Exchange since Oct. 20 due to a capital reduction and will resume on Oct. 31. The stock closed at NT$268.00 on Oct. 19.
In March, Yageo announced a plan to lower its paid-in capital by 20 percent, or by NT$1.08 billion, to NT$4.32 billion as part of a capital restructuring project.
Source: Focus Taiwan News Channel