Invensys

Invensys was a British multinational engineering and information-technology company headquartered in London. It became one of the more substantial independent suppliers of industrial automation, process control, safety systems, manufacturing software, energy-management services, and appliance controls before its operations were absorbed by Schneider Electric in 2014. Although the Invensys corporate identity dates from the 1999 merger of BTR plc and Siebe plc, the company traced its corporate history through Siebe Gorman & Company, established in 1920, and through the many engineering businesses subsequently assembled by its predecessor companies. At its height, Invensys maintained offices in more than 50 countries and sold products in approximately 180 countries. Its portfolio was organized into four broad activities: Software, Industrial Automation, Energy Controls, and Appliance. Important brands included Foxboro, Eurotherm, Triconex, Wonderware, SimSci, Avantis, Skelta, IMServ, Drayton, Eberle, and Eliwell. These businesses served process industries, discrete manufacturing, energy and utilities, transportation, buildings, and household-appliance manufacturers. Offerings ranged from distributed control systems, industrial measurement instruments, and safety controllers to asset-management software, production-operations platforms, simulation tools, energy data services, and thermostatic controls. The company experienced severe financial pressure soon after its creation. Its acquisition of Baan Corporation in 2000, completed during the late dot-com boom, proved particularly damaging: the purchase contributed to a large debt burden and was followed by a sale at a fraction of the acquisition cost. Between 1999 and 2004, Invensys undertook extensive restructuring, disposals, cost reduction, and redundancies. A debt restructuring reported at approximately £2.7 billion, together with the sale of non-core businesses, helped prevent a possible collapse and improved the balance sheet by 2005. After the restructuring, Invensys refocused on automation and control technologies and rebuilt its position through selected acquisitions and organic development. Rail signaling became an important growth area. Westinghouse Rail Systems and related activities were aligned under the Invensys Rail name in the late 2000s, with the business supplying signaling systems compatible with the European Rail Traffic Management System. Invensys Rail won substantial contracts in the United Kingdom and overseas, particularly in China and other rapidly expanding rail markets. The rail operation was sold to Siemens in May 2013 for £1.7 billion, with much of the proceeds directed toward the company pension deficit. Invensys also expanded its involvement in China in industrial automation, power generation, and rail. However, delays in producing control and safety systems for eight Chinese nuclear reactors resulted in a reported £40 million expense. The charge contributed to a sharp fall in the company's share price between 2011 and early 2012 and reinforced pressure to find a larger strategic owner. Invensys held discussions with Emerson Electric regarding a possible takeover, but no firm bid emerged. Schneider Electric announced an agreement to acquire Invensys in July 2013. The transaction, valued at approximately £3.4 billion, or about $5.5 billion depending on the stated consideration basis, was completed on 17 January 2014. Schneider subsequently integrated the businesses and phased out the Invensys corporate brand, although several product names and technologies continued within Schneider Electric's industrial automation portfolio.

Invensys was created in 1999 when BTR plc and Siebe plc merged. The resulting company inherited a broad collection of engineering, industrial, software, controls, and appliance businesses. Its longer corporate lineage reached back to Siebe Gorman & Company, established on 1 April 1920, after which the predecessor group underwent successive name changes and acquisitions. The new group expanded rapidly during the late 1990s and early 2000s. Its acquisition of Baan Corporation in 2000, for approximately €762 million, became a central problem when the technology market weakened after the dot-com boom. Baan was sold roughly three years later for about US$135 million. Other disposals, including Fasco Motors and Eurotherm Drives, were used to raise funds and narrow the company's focus. Falling sales, substantial borrowings, and the cost of restructuring led to thousands of redundancies and created concern that the company might fail. A disposal program and approximately £2.7 billion of debt restructuring in 2004 stabilized the group. Rick Haythornthwaite left as chief executive in May 2005 and was succeeded by Ulf Henriksson. Following the refinancing, Invensys resumed selective expansion in automation, software, energy controls, and related industrial technologies. In 2006, Schneider Electric acquired Invensys Building Systems operations in North America and Asia. In 2007, Invensys agreed to sell its Firex Safety Division to United Technologies and also continued developing its presence in Indonesia. The company's industrial portfolio included process-control and instrumentation businesses such as Foxboro and Eurotherm, safety systems supplied under the Triconex name, industrial software under Wonderware and SimSci, asset-management products from Avantis, business-process software from Skelta, and energy-monitoring services from IMServ. Appliance and domestic-control brands included Drayton, Eberle, and Eliwell. The group therefore operated across both capital-intensive industrial systems and software and component businesses. Rail became a particularly important activity during the late 2000s and early 2010s. Westinghouse Rail Systems was renamed Invensys Rail in 2009 as the company aligned its railway businesses under one identity. The division supplied signaling and control equipment, including systems compatible with the European Rail Traffic Management System. Invensys Rail secured contracts with organizations such as Network Rail and Obrascón Huarte Lain, and it developed licensing and commercial relationships in China. In 2011, the division announced or secured deals with a cumulative reported value of approximately £700 million. Leadership changed again in March 2011, when chief financial officer Wayne Edmunds became chief executive, replacing Henriksson. Invensys was increasingly active in China across rail, power generation, and industrial automation, but delays in control and safety systems for eight Chinese nuclear reactors resulted in a reported £40 million charge. The issue was associated with a fall of nearly half in the company's share price between 2011 and early 2012. Management explored a possible sale to Emerson Electric in 2012, although Emerson did not make a firm offer. The company also had to clarify market speculation concerning a possible investment by China Southern Rail. On 2 May 2013, Invensys sold its Wiltshire-based rail division to Siemens for approximately £1.7 billion. The transaction reduced the scope of the group and provided funds, much of which was directed to its pension obligations. In July 2013, Schneider Electric announced an agreement to acquire the remaining Invensys business for a consideration reported at approximately £3.4 billion. Reports also discussed the possibility of a counterbid from General Electric, but Schneider's transaction proceeded. Completion occurred on 17 January 2014. Schneider chose to integrate Invensys rather than maintain it as an independent corporate brand, and the Invensys name was progressively withdrawn, although many products and technologies continued under Schneider Electric ownership.

• 2014

  Schneider Electric takeover completed

  [1]Invensysen.wikipedia.org

  Schneider Electric completed its acquisition of Invensys on 17 January 2014 and later integrated the company.

• 2013

  Rail division sold to Siemens

  [1]Invensysen.wikipedia.org

  Siemens acquired Invensys Rail for approximately £1.7 billion.

• 2011

  Wayne Edmunds becomes chief executive

  [1]Invensysen.wikipedia.org

  Chief financial officer Wayne Edmunds succeeded Ulf Henriksson as chief executive.

• 2009

  Westinghouse Rail Systems renamed Invensys Rail

  [1]Invensysen.wikipedia.org

  The rail business adopted the Invensys Rail identity as part of a broader effort to unify the group's railway activities.

• 2005

  Ulf Henriksson becomes chief executive

  [1]Invensysen.wikipedia.org

  Following the restructuring, Ulf Henriksson replaced Rick Haythornthwaite as chief executive.

• 2004

  Debt restructuring stabilizes the company

  [1]Invensysen.wikipedia.org

  A major disposal and refinancing program, reported at approximately £2.7 billion of debt restructuring, helped avert a potential collapse.

• 2000

  Baan Corporation acquired

  [1]Invensysen.wikipedia.org

  Invensys acquired Baan Corporation during the technology-market boom, an investment that later contributed significantly to its debt burden.

• 1999

  Invensys is formed

  [1]Invensysen.wikipedia.org

  BTR plc and Siebe plc merged to create Invensys, combining a wide range of engineering and technology businesses.

• 1920

  Siebe Gorman lineage begins

  [1]Invensysen.wikipedia.org

  Siebe Gorman & Company was established on 1 April 1920, providing part of the corporate lineage later associated with Invensys.

A high-end industrial automation and control-solutions provider serving process industries, manufacturing, infrastructure, transportation, energy, and appliance markets.

• Process automation and instrumentation

  Foxboro

  Foxboro supplied distributed control systems, plant-operation controls, measurement platforms, and industrial instruments. Its portfolio included pressure transmitters, Coriolis flow meters, valve positioners, level transmitters, and temperature transmitters for process industries.

• Industrial software

  Wonderware

  Wonderware provided software for production operations, manufacturing intelligence, production performance, business-process management, collaboration, and related industrial information workflows.

• Safety and critical control

  Triconex

  Triconex supplied safety and critical-control systems for applications such as emergency shutdown, burner management, fire and gas protection, and turbomachinery control and protection.

• Industrial control and measurement

  Eurotherm

  Eurotherm offered industrial control, measurement, data-recording, and process-monitoring products for industrial and process customers.

• Industrial software

  SimSci

  SimSci developed applications for process simulation, optimization, operator training, asset performance, utilization improvement, and process-control support.

• Enterprise asset management

  Avantis

  Avantis Enterprise Asset Management supported maintenance planning, repair and operations, spare-parts and inventory management, condition monitoring, procurement, and related asset-maintenance activities.

• Railway signaling · 2009

  Invensys Rail

  Invensys Rail supplied railway signaling, control, and traffic-management equipment, including products designed to work with the European Rail Traffic Management System. The division was sold to Siemens in 2013.

• 2014

  Acquisition by Schneider ElectricM&A

  Background

  Invensys had recovered from earlier financial distress but faced strategic pressure after the rail disposal and the nuclear-control-system delays.

  Action taken

  Schneider Electric completed the acquisition of Invensys on 17 January 2014 for a reported consideration of approximately £3.4 billion.

  Aftermath

  Schneider fully integrated the company and phased out the Invensys corporate brand, while retaining or incorporating selected businesses and technologies.

  Acquisition consideration. (2014)

  • General Electric — General Electric was reported to be considering a possible counterbid, but no completed competing offer is identified in the reference material.

  Source

• 2013

  Sale of Invensys Rail to SiemensM&A

  Background

  Invensys sought to realize value from its rail business and address obligations including a company pension deficit.

  Action taken

  The rail division was sold to Siemens for approximately £1.7 billion.

  Aftermath

  Invensys exited the rail business and used much of the proceeds to address its pension position.

  Transaction value. (2013)

  Source

• 2004

  Restructuring and debt refinancingStrategy

  Background

  The company faced a heavy debt burden, weak sales, acquisition losses, and the risk of financial failure.

  Action taken

  Invensys sold non-core businesses, reduced costs, implemented substantial redundancies, and completed a debt restructuring reported at approximately £2.7 billion.

  Aftermath

  The program improved the company's financial position and enabled renewed investment and selective acquisitions after 2005.

  Debt restructuring. (2004)

  Source

1. 1Invensysen.wikipedia.org
2. 2Invensys information on Schneider Electric websitese.com