The US electrical manufacturer market isn’t the only one consolidating and diversifying. Australia is also and Legend is building.
The Australian electrical market is a $7 billion market. Very similar dynamics to the US.
Legend Corp is a major player in the market and is growing through acquisition as well as organically. Recently they also diversified into the utility space as the Australian utility market, much like the US’, is primed for modernization. In fact, there is a $30 billion renovation / expansion project pipeline in the country.
Legend Acquires to Pursue $30B Opportunity
Legend Corporation, a market leading provider of electrical products and industrial solutions, announces that it will acquire 100% of Acculec Group (“Acculec”), a leading designer and supplier of high voltage (HV) products used by power utilities, infrastructure, renewable power and industrial projects in Australia and New Zealand.
The acquisition significantly extends the capabilities of Legend’s HV Power
business and enables us to provide a wider range of solutions to customers in a number of growing end-markets.
Commenting on the acquisition, CEO of Legend, Gary Uren, said: “Acculec
strengthens our business and brings key high-voltage power transmission and distribution capabilities to Legend, complementing our already well-established medium voltage product lines. One of the things that really attracted us to Acculec was its market reputation for engineering skillsets and its strong relationships with key global players in the medium and high voltage markets.”
Danny Bravo, Sales Director at Legend Power Systems said: “The combination of Legend Power Systems, Acculec and our other global strategic partners effectively means that our team can create unique packaged product solutions for customers across the entire network of power generation, transmission and distribution. It also provides us with a stronger edge to compete for larger scale projects in renewables, infrastructure and mining sectors – all of which offer significant near-term growth prospects to Legend and diversify our end market exposure.”
Through its Legend Power Systems business, Legend supplies a wide range of proven power electrical connectivity, special tools, jointing systems and
electrical safety products.
“Legend is a business which continues to transform through strategic M&A and global partnerships, and this transaction supports our focused portfolio of electrical products and industrial solutions. We are excited to onboard Acculec’s team and leverage their technical expertise across the wider business as we meet the evolving demands of all our customers,” Gary Uren added.
Takeaway
While Legend focuses on the Australian market, their deal highlights that electrical manufacturers, as well as distributors and reps, are looking for not only growth through acquisition, but also looking at diversification into complementary markets. With governments investing in renewables and infrastructure upgrades, as well as modernizing broadband and utilities, companies looking 5 years plus are considering expanding their horizons.
Another case where, “size matters”.
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