Legrand SA of France (1030781.FR) acquired Estap, a Turkish company that makes VDI enclosures and cabinets, the French company said Tuesday.
"This acquisition reinforces Legrand's positions in emerging countries and on the high-growth market for VDI systems in commercial applications," the French company said.
The move underscores Legrand's accelerating expansion on emerging markets, which accounted for some 50% of its organic growth in 2007.
The acquisition of Estap reinforces the group's position in Turkey in the markets of wiring devices and energy distribution.
Deriving close to 60% of sales from exports, in particular to Eastern Europe and the Middle East, Estap also consolidates Legrand's excellent positions on these markets. From a more general perspective, the resulting rise in Legrand's share of the Turkish market, one of the group's growth centers, consolidates its multi-pole structure, thus improving its growth profile and resilience.
In addition, this acquisition enables Legrand to continue expansion in VDI systems for commercial applications, a fast-growing market where its sales showed a double-digit rise in 2007. In this area, Estap brings Legrand a new production base that will allow it to accelerate the development of its VDI business on promising markets in Eastern Europe and the Middle East with the support of its existing sales network.
Based in Istanbul and operating a production site in Eskisehir, Estap reported sales of more than 22 million in 2007, showing a rise of more than 40 % from the previous year.