Schneider Electric, the global specialist in energy management, has signed an agreement to acquire Leader Harvest Power Technologies Holdings, one of the leading players in the fast-growing medium voltage drives market in China with a key position in mining drives supply. The total purchase price for the company is about $650 million.Headquartered in Beijing, Leader & Harvest develops, manufactures and commercialises medium voltage (MV) variable speed drives. The company employs over 750 people and has an extensive in-house nationwide sales and service support network across 30 provinces.  With an annual growth rate in excess of 20% in the past few years, the company is expected to generate sales of approximately $150 million in 2011.

According to Schneider, it offers a range of enhanced solutions offerings, centred on high end-markets such as cement, mining and metals and energy. The statement said: “The transaction will add another key brick to Schneider Electric’s product and solution offerings that provide energy efficiency to its key targeted end-markets in new economies. Leader & Harvest’s medium voltage drives range from 2 kV to 11 kV, while Schneider Electric is already a leading player in low voltage drives which serve different market segments. Leader & Harvest also improves the Group’s advanced service capability for its customers.”

Clemens Blum, Executive Vice-President of Schneider Electric’s Industry business, commented: “Leader & Harvest’s range represents an excellent addition to our industrial automation range of products and solutions.  Medium voltage drives are a key element of energy efficient solutions to our key target segments of mining, minerals & metals and water & waste water.  The transaction also enlarges our customer reach and presence in China which is a key market for our business.  It also provides us with the opportunity to increase our penetration in a number of countries, especially in the new economies.”