Woodward Governor Company has signed a definitive agreement to purchase all SEG Schaltanlagen-Elektronik-Geraete (SEG) stock from Cummins and Schmitz-Beteiligungs (SBG) for an undisclosed sum.
Woodward Governor has signed an agreement to purchase all SEG Schaltanlagen-Elektronik-Geraete (SEG) stock from Cummins and Schmitz-Beteiligungs (SBG), subject to customary approvals.
The acquired business is expected to be accretive to earnings in the first full year of operations. Terms of the agreement were not disclosed.
Headquartered in Kempen, Germany, SEG generated sales of approximately $60m in calendar year 2005. SEG’s product lines are focused on a wide range of protection and comprehensive control systems for power generation and distribution applications, power inverters for wind turbines for the operation of speed variable, double-fed asynchronous generators, and complete electrical systems for gas and diesel engine based power stations.
‘SEG will become a part of our growing electronics business within Woodward’s Industrial Controls segment,’ said Thomas A. Gendron, Woodward President and CEO. ‘SEG’s protective relays are used in the electrical power generation and distribution markets, and complement Woodward power generation system solutions. The alternative, renewable energy markets continue to be areas of interest to Woodward. SEG’s high-power inverters are an integral part of modern wind turbines.’
Woodward expects to close the acquisition in October 2006, pending satisfaction of all conditions to closing.