With electrical equipment manufacturers outperforming many other companies in the stock market, the owners of French industrial conglomerate Legrand, parent of Legrand North America, have decided the time is right to sell a 20-percent stake in the company.
Based in Limoges, France, Legrand is owned by investment bankers Kohlberg Kravis Roberts & Co. (KKR) and Wendel Investissement, which will retain a majority stake in the company after an initial public offering for the 20-percent stake. Legrand is known in North America for its stable of well-known electrical brands, including Pass & Seymour, Wiremold, Watt Stopper and Ortronics.
John Seldorf, CEO of Legrand North America, said the IPO could hit the market as soon as the next 60 to 90 days, but that the timing would depend on market conditions. The company would trade on the French exchange.
"One of the good values of Legrand as a company is that we’re doing things that make sense to us to increase the value of our business," he said. "Whether we are doing that for the private shareholders or the public market, it doesn’t change what we should be doing. I know a lot of people think that means we will behave differently. That’s not true. It wasn’t the case before and it won’t be the case again."
KKR and Wendel each acquired a 37.4 percent stake in Legrand in December 2002. That was after French electrical equipment maker Schneider Electric SA, which had bought the company two years earlier, was forced by the European Commission to sell it due to antitrust objections.