Siemens acquires Robicon for US$197 million

Siemens acquires Robicon for US$197 million

Robicon has agreed to sell its assets to Siemens Energy and Automation for approximately US$197.5 million in cash. These assets include Robicon's shares in its subsidiary in Shanghai, China; High Wycombe, UK; Sao Paulo, Brazil; and Edmonton, Alberta, Canada. Robicon produces industrial power conversion and control equipment and systems.

On June 1, 2005, employees

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Robicon has agreed to sell its assets to Siemens Energy and Automation for approximately US$197.5 million in cash. These assets include Robicon's shares in its subsidiary in Shanghai, China; High Wycombe, UK; Sao Paulo, Brazil; and Edmonton, Alberta, Canada. Robicon produces industrial power conversion and control equipment and systems. Siemens added that Robicon will continue to operate in New Kensington and all its employees and business relationships will remain unchanged.

Stephen Gray, Robicon's Chapter 11 trustee, said that after marketing Robicon to other potential buyers, he appointed Siemens as the leading bidder. He reported that Siemens provides the greatest value to Robicon's creditors and provides security and stability to its employees, customers, suppliers and channel partners. The proceeds from the sale will enable High Voltage Engineering Corp. and its domestic affiliates (including Robicon and Charles Evans Associates) to pay its secured and unsecured creditors’ pre-litigation claims in full.

Siemens said the acquisition of Robicon will allow it to expand its product portfolio and expand its influence in the field of medium voltage drives. According to reports, Robicon has provided Siemens with complementary products, technologies and channel combinations, providing long-term growth opportunities for the two companies.