Legrand acquires Australian power distribution firm VASS Electrical

Legrand has announced the completion of its acquisition of Australian Busway power distribution company VASS Electrical Industries. The strategic move is set to bolster Legrand's portfolio in the data centre, commercial, industrial, and infrastructure sectors.

Based in Ingleburn, New South Wales, VASS employs 35 people and has been a prominent player in the Busway power distribution solutions market since 1958. VASS has built a strong reputation with a particular focus on the rapidly expanding data centre market and the commercial and infrastructure segments.

The integration of VASS's Busway solutions with Legrand's existing range of electrical and digital building infrastructure products aims to create a more comprehensive offering for their customers. This acquisition aligns with Legrand's strategy to expand its local manufacturing capabilities in the Australian and New Zealand (ANZ) market.

Palash Nandy, CEO of Legrand ANZ, commented on the acquisition: "Our investment in VASS, as well as the acquisition of Mechanical Support Systems (MSS), the New Zealand market leader in cable management solutions, demonstrates our active growth strategy in the ANZ market. This also reflects our commitment to increasing our local manufacturing footprint."

Nandy further expressed enthusiasm about the synergies between the two companies, stating, "We are thrilled to welcome and work with the team at VASS. Our combined market strengths and complementary solutions will enhance our customers' experiences and support their electrical, digital infrastructure, and sustainability goals."

The acquisition comes as the Australian data centre sector experiences dynamic growth. According to S&P Global Market Intelligence's 451 Research Technology & Business Insight Market Forecast, the revenue from the leased data centre sector in Australia is projected to grow at a compound annual growth rate (CAGR) of 15% over the next three years. This growth is driven by increased internet traffic, artificial intelligence, and the surge in cloud computing.

Legrand's data centre segment worldwide contributes approximately 15% of its sales, and the company has reported solid double-digit growth year-on-year in its data centre offerings in Australia alone.

Christopher Vass, Managing Director of VASS Electrical Industries, expressed optimism about joining Legrand: "Joining Legrand is a logical next step for us, as Legrand is a market leader that shares our commitment to industry excellence and delivering smart, sustainable, and innovative solutions. We are confident that this move will help our Australian and global customers take their businesses to greater heights and will provide Legrand with an avenue to increase and complement their offering to these markets."

Legrand Australia's local manufacturing from its Prestons facility currently accounts for 40% of the company's revenue. The company also maintains a dedicated research and development team to tailor products and solutions specifically for the ANZ market.

As part of its global strategic roadmap, Legrand focuses on growth and development initiatives, which include targeted acquisitions, innovative product launches, and expansion into new markets.