Schneider Electric announced that it has signed an agreement to acquire Summit Energy Services Inc., which provides energy procurement and sustainability services to industrial, commercial, and institutional enterprises. Summit employs more than 350 people based in 11 offices across North America and Europe.
Chris Curtis, Schneider Electric’s senior executive vice president, North America, said, “The acquisition of Summit Energy allows Schneider Electric to broaden our energy management services and solution portfolio, offering customers the ability to manage and optimize their energy consumption from the supply side through the demand side, while also growing our energy and environmental online reporting capabilities.”
“By joining with Schneider Electric, we will be able to deliver Summit’s unique service offering to Schneider Electric customers,” said Steve Wilhite, Summit Energy’s president and CEO. “In recent years, we have invested heavily in people and technology to serve our clients. In combining our strengths with Schneider Electric’s resources, Summit Energy will be even better positioned to lead our clients to cost-effective and sustainable energy.”
The total purchase price for the company is $268 million on a debt-free cash-free basis, subject to certain adjustments. The completion of the transaction is subject to regulatory approvals and customary closing conditions. This acquisition is expected to be accretive on earnings per share from year 1 and to meet Schneider Electric’s Return on Capital Employed criteria in 2014.