Finnish-based, globally operating electrical solution provider Ensto has made a strategic decision to focus on its electricity distribution business, aiming to become a leading expert for Distribution System Operators (DSOs). Along with this decision, Ensto Building Systems business will be acquired by Legrand, the global specialist in electrical and digital building infrastructures.
To enable future growth and business development, the owners, Ensto’s Board, and management have made a strategic decision for Ensto Group to focus on electricity distribution (DSO) business and sell its Ensto Building Systems (EBS) business to Legrand, the global specialist in electrical and digital building infrastructures. Ensto Building Systems provides electrification and lighting solutions for buildings, industries, traffic and marine.
“The transaction supports the next phase in Ensto’s growth strategy and enables us to fully focus on becoming the leading expert for distribution system operators for selected segments on global markets. By solely focusing on the DSO business, we are able to better serve our DSO customers with our expertise and solutions with sustainability and smart technologies at its core. The transaction takes this focus and attention to the next level”, says Hannu Keinänen, President and CEO of Ensto Group.
The transaction will benefit the customers, partners, and personnel of Ensto’s both businesses. Legrand, the global strong player in building electrification and digitalization, enables significant growth for EBS and its customers in all its product areas, especially in the Nordics. While the Ensto DSO business will have a full focus to be developed further by the owners, Ensto’s Board, and management with a goal to become the leading expert for DSOs.
“As the owners of Ensto, we are extremely committed to the development of Ensto, and this transaction allows us to allocate the necessary financial and operational resources to ensure the growth of the Ensto DSO business. As a family business and owner, we are pleased that we have found a great new home and a dedicated long-term owner for Ensto Building Systems in Legrand Group. It will provide an excellent foundation to develop the EBS business further,” Marjo Miettinen, owner and Chair of the Board of Ensto, points out.
"This acquisition is fully in line with our growth strategy as it allows us to expand our geographical footprint as well as to position Legrand on promising markets. EBS, which generated around 120 M€ of revenue, is a leader in diversified low-voltage products in the Nordics and likewise benefits from a strong reputation in fast-growing business with electric vehicle charging stations. Legrand is ideally positioned to grow the EBS businesses’ portfolio of high-quality products in the Nordics and other European countries, notably by complementing EBS catalogs with additional product categories, further investing in technology and new products, and continuing to meet EBS customers’ requirements in terms of service,” says Benoît Coquart, Chief Executive Officer of Legrand.
After the transaction Ensto with its DSO business will operate in 17 countries, employ approximately 815 people, and have an estimated turnover of 140 M€ in 2021. Ensto Invest Oy continues to be the owner of Ensto Oy and the Family Office of the Miettinen family.
The contract between Ensto and Legrand has been signed on July 16, 2021. The completion of the transaction remains subject to customary conditions precedent. As a part of the transaction, Ensto and Legrand have made a license agreement for the use of the Ensto brand in connection with EBS scope of business. The parties have agreed not to disclose the transaction price.
President and CEO, Ensto Group
Legrand is the global specialist in electrical and digital building infrastructures. Its comprehensive offering of solutions for commercial, industrial, and residential markets makes it a benchmark for customers worldwide. The Group harnesses technological and societal trends with lasting impacts on buildings with the purpose of improving life by transforming the spaces where people live, work, and meet with electrical, digital infrastructures and connected solutions that are simple, innovative and sustainable. Drawing on an approach that involves all teams and stakeholders, Legrand is pursuing its strategy of profitable and sustainable growth driven by acquisitions and innovation, with a steady flow of new offerings—including Eliot* connected products with enhanced value in use. Legrand reported sales of €6.1 billion in 2020. The company is listed on Euronext Paris and is notably a component stock of the CAC 40 and CAC 40 ESG indexes. (code ISIN FR0010307819). www.legrandgroup.com