Beatrice Lang
Eaton Corporation is a diversified industrial manufacturer with a global presence, specialising in power management and distribution. Schneider Electric is a French power and process control equipment firm. In 2007, Eaton acquired Schneider Electric's small systems business, MGE UPS Systems, for $570 million. This acquisition gave Eaton access to new markets and distribution channels, particularly in the UPS single-phase portfolio and the Chinese market. Eaton has since continued to expand its business through various acquisitions, such as Tripp Lite and Cooper Industries, while also developing its own data centre power distribution products. As of 2025, Eaton UPS has a mindshare of 37.4% in the Data Centre Power Solutions category, slightly ahead of Schneider Electric-APC Smart-UPS VT at 35.9%.
| Characteristics | Values |
|---|---|
| Schneider Electric's intention to sell MGE UPS Systems to Eaton | To fulfil its promise to the European Commission following the acquisition of American Power Conversion |
| Eaton's offer for MGE UPS Systems | €425 million (debt-free, cash-free basis) |
| MGE UPS Systems' revenue in 2006 | €156 million |
| MGE UPS Systems' sales for the 12-month period ending May 31, 2007 | €163 million ($218 million) |
| MGE UPS Systems' EBITDA for the 12-month period ending May 31, 2007 | €39 million ($52 million) |
| MGE UPS Systems' EBIT margin in 2006 | 20.5% |
| Eaton's intention for MGE UPS Systems | To pursue the current development strategy, relying on the existing management team and employee expertise |
| MGE UPS Systems' presence | In more than 40 countries |
| MGE UPS Systems' products | Uninterruptible power supplies, static transfer switches, harmonic filters, and advanced power management solutions |
| MGE UPS Systems' experts and partners | 3500 |
| MGE UPS Systems' recognition | Frost & Sullivan "UPS Company of the Year" in 2005 and 2006 |
| Eaton UPS's mindshare in the Data Center Power Solutions category as of June 2025 | 37.4% |
| Schneider Electric-APC Smart-UPS VT's mindshare in the Data Center Power Solutions category as of June 2025 | 35.9% |
| Ease of deployment and customer service | Schneider Electric-APC Smart-UPS VT offers straightforward installation and accessible customer service, while Eaton UPS provides comprehensive deployment assistance and customizable installation options |
| Pricing and ROI | Schneider Electric-APC Smart-UPS VT is more affordable upfront, but Eaton UPS offers better long-term ROI through efficiency and features |
Explore related products
What You'll Learn
Schneider Electric wanted to sell MGE to Eaton
Schneider Electric is a French electrical engineering group and a world power and control specialist. In 2007, the company announced it was entering negotiations with Eaton Corporation to sell its MGE UPS Systems operations in small systems. This was in line with its commitment to the European Commission following the acquisition of American Power Conversion (APC).
Eaton Corp. is a diversified industrial manufacturer and a global leader in electrical systems and components for power quality, distribution, and control. The company offered €425 million (approximately $570-587 million) for Schneider Electric's MGE UPS Systems business, which generated revenues of €156 million in 2006 and an EBIT margin of 20.5%.
The sale of MGE UPS Systems was a condition placed on Schneider Electric by European anti-trust authorities, as MGE, like APC, made uninterruptible power supply (UPS) systems. The acquisition of MGE's small systems business would bring valuable technology to fill product gaps in Eaton's UPS single-phase portfolio and provide access to new markets and distribution channels, particularly in China.
The negotiations between Schneider Electric and Eaton Corp. were expected to lead to a mutually satisfactory agreement, with the transaction closing during the third quarter of 2007. This acquisition would add to Eaton's previous acquisitions, including Aphel Technologies Ltd., Pulizzi Engineering Inc., and Tripp Lite, enhancing its UPS business and expanding its global presence.
Calculating BTU for Your Electric Furnace: A Step-by-Step Guide
You may want to see also
Explore related products
Eaton acquired MGE UPS Systems for $570 million
In 2007, Eaton Corporation acquired MGE UPS Systems, a small systems business unit of Schneider Electric, for $570 million (or €425 million). MGE Office Protection Systems, based in Montbonnot, France, sells single-phase UPS and surge suppression products in over 40 countries.
The acquisition was part of Eaton's strategy to expand its Power Quality business and fill product gaps in its UPS single-phase portfolio. Randy W. Carson, Eaton Senior Vice President and President of the Electrical Group, stated that MGE's technology and global presence would provide access to new markets, distribution channels, and manufacturing opportunities, particularly in regions like China.
Eaton's businesses are divided into sectors, including the electrical sector, aerospace, and the Mobility Group. The electrical sector includes products such as circuit breakers, switchgear, UPS systems, and power distribution units. The company has a global reach, serving customers in various markets and industries.
Eaton has a history of acquisitions to enhance its product offerings and market position. For example, in 2012, it acquired Cooper Industries for $11.46 billion, and in 2021, it acquired Tripp Lite for $1.65 billion to expand its single-phase UPS business. Eaton's commitment to innovation, customer relationships, and service has contributed to its growth and presence in the industry.
Electric Violin: Grating Notes or Musical Bliss?
You may want to see also
Explore related products
Schneider Electric-APC Smart-UPS VT provides straightforward installation
Schneider Electric-APC Smart-UPS VT provides a straightforward installation process. It is ideal for small data centres, large retail stores, regional offices, and dense power requirements. The Smart-UPS VT includes dual-mains input, automatic and maintenance bypasses, and scalable runtime with hot-swappable batteries for increased availability. The rack-mounted version maximises floor space by incorporating UPS, power distribution, and additional battery capacity in a single rack.
The Schneider Electric-APC Smart-UPS VT has a low cost of ownership, achieved through its best-in-class efficiency and a reduction in the rating of electrical infrastructure, such as wires, transformers, and generators, due to the Soft Start feature. The APC Network Management Card with temperature monitoring provides remote monitoring and management through a simple Web/SNMP interface and provides integration with InfraStruXure Manager. The user-replaceable batteries, manageable extended run frames, and included start-up and standard onsite warranty services further enhance the serviceability of the Smart-UPS VT.
The Schneider Electric-APC Smart-UPS VT is one of the power protection solutions provided by the company. It is used to protect the IT infrastructure of sectors such as banking, hospitality, and healthcare. Schneider Electric-APC Smart-UPS VT provides straightforward installation and accessible customer service. It presents a more affordable setup and an impressive ROI, while Eaton UPS offers better long-term ROI through efficiency and features, offsetting the initial investment with potential operational cost savings.
Eaton UPS is a power management provider that delivers a comprehensive portfolio of uninterruptible power supply, backup power, power distribution, and power management solutions. Eaton UPS offers comprehensive deployment assistance and customizable installation options, supported by detailed guidance. It has different critical layers of redundancy, including battery banks and controllers inside a UPS, as well as a default internal bypass mechanism in case of UPS failure. Eaton's businesses are divided into sectors, including the electrical sector, which offers products such as circuit breakers, switchgear, UPS systems, and power distribution units. Eaton has expanded its business through various acquisitions, such as Tripp Lite, Cooper Industries, and MGE UPS Systems from Schneider Electric, to enhance its product offerings and global presence.
Warranty Coverage for Electric Doors in Honda Odyssey
You may want to see also
Explore related products
Eaton UPS offers comprehensive deployment assistance
Eaton Corporation is a leading global provider of comprehensive power quality and backup power management solutions. The company offers a wide range of products and services, including uninterruptible power supply (UPS) systems, power distribution units, circuit breakers, switchgear, and more.
The company's UPS solutions are designed to meet specific customer requirements, whether complementing existing solutions or providing a comprehensive single solution. Eaton's UPS products are known for their high uptime, energy efficiency, and advanced features, such as easy integration and advanced battery management.
In addition to its comprehensive deployment assistance, Eaton UPS also offers warranty protection and an extensive customer support network. The standard factory warranty ensures performance and reliability, while the extended warranty is available for specific UPS units. Eaton's End of Service Life (EOSL) program helps customers stay updated with state-of-the-art power protection equipment.
Eaton UPS's focus on innovation and customization has earned the confidence of customers worldwide. The company consistently delivers high availability, fulfilling the demands of today's digital economy. With a commitment to providing reliable power solutions, Eaton UPS offers peace of mind and improved operational efficiency for businesses and organizations.
EBow: Electric Guitar Exclusive or Multi-Instrument Wonder?
You may want to see also
Explore related products
Eaton Corporation is a diversified industrial manufacturer
Eaton Corporation plc is an American-Irish-domiciled diversified industrial manufacturer and power management company. It was founded in 1911 by Joseph O. Eaton, his brother-in-law Henning O. Taube, and Viggo V. Torbensen, as the Torbensen Gear and Axle Co. in Bloomfield, New Jersey. The company was set up to manufacture Torbensen's patented internal-gear truck axle.
Eaton Corporation has since grown into a multinational company with a primary administrative centre in Beachwood, Ohio, and over 85,000 employees worldwide. The company's products and services are used in a wide range of industries and markets, including residential, commercial, institutional, industrial, utilities, data centres, oil and gas, mining, and original equipment manufacturers (OEMs).
Eaton's businesses are divided into several sectors, including the electrical sector, the aerospace sector, and the mobility group. The electrical sector includes products such as circuit breakers, switchgear, UPS systems, power distribution units, and inverters. The aerospace sector manufactures and markets systems and components for hydraulic, fuel, motion control, pneumatic systems, and engines. The Mobility Group includes the Vehicle and eMobility segments, with products such as hybrid power systems and transmissions.
Eaton has expanded its business through numerous acquisitions over the years. Some notable acquisitions include Fuller Manufacturing in 1958, Yale & Towne Manufacturing Co. in 1963, Cooper Industries in 2012, and Tripp Lite in 2021. Eaton has also shown interest in acquiring businesses from its competitors, such as Schneider Electric, with whom it co-branded UPS products for a period.
Eaton Corporation is committed to improving the quality of life, protecting the environment, and helping its customers manage power through innovative and sustainable practices. The company has ranked highly in corporate responsibility, including being listed in the "100 Best Corporate Citizens" by Corporate Responsibility Magazine in 2013.
Quickly Repair Your Cracked Electric Cooktop
You may want to see also
Frequently asked questions
No, Eaton UPS is not owned by Schneider Electric. However, in 2007, Eaton acquired Schneider Electric's MGE UPS Systems operations in small systems for $570 million.
Schneider Electric is a French power and process control equipment firm and a world-renowned power and control specialist.
Eaton UPS offers power management solutions and is a diversified industrial manufacturer with sales of $12.4 billion in 2006.
Schneider Electric-APC Smart-UPS VT provides straightforward installation and accessible customer service, while Eaton UPS offers comprehensive deployment assistance and customizable installation options. Schneider Electric has a more affordable setup, but Eaton UPS offers better long-term ROI through efficiency and features.
