General FAQs
What is being communicated?
We are pleased to announce that Watlow has entered into an agreement with Schneider Electric for the acquisition of its Eurotherm business unit.
Who is Watlow – where are they headquartered and where do they manufacture?
Watlow, headquartered in St. Louis, Missouri, USA, is a global industrial technology company that uses world-class engineering expertise, advanced thermal systems, and manufacturing. Watlow designs and manufactures industrial heaters, temperature sensors, controllers and supporting software as well as assemblies.
Many of the world’s leading companies leverage Watlow’s technology in vital applications such as front-end semiconductor processing, environmentally friendly energy solutions and lifesaving medical and clinical equipment.
Founded in 1922, Watlow’s culture is driven by their purpose of “Enriching Lives Through Inspired Innovation,” enabling them to deliver high-impact solutions that improve customers’ competitive advantage.
Why is Watlow acquiring Eurotherm?
The acquisition by Watlow will accelerate our growth plans by providing our customers with even more options to help them succeed. Combining both companies’ leading controls technologies, similar engineer-to-engineer “consultative” sales model, experienced teams and our common focus on attractive markets gives the combined businesses a formidable advantage in rapidly scaling our business. This is especially compelling for our Industry 4.0 strategy.
Why is Schneider Electric selling Eurotherm?
Eurotherm has a very solid foundation for future growth. Following a strategic review, Schneider Electric and Eurotherm have concluded that attracting an external investor active in Eurotherm’s “space” promises to be the most positive and fruitful scenario for our future.
Who owns Watlow?
Watlow is owned by Tinicum, LP and its affiliates and members of the Desloge family. Tinicum seeks to be a trusted partner of business owners and management teams, applies deep industrial experience to developing enduring franchises, offers Watlow, a patient and family-oriented capital base with an indefinite life, and is focused on building businesses for the long-term.
What is the timing of this acquisition?
We anticipate that completion of the acquisition, which is subject to the requisite regulatory approvals being received and employee consultation processes will take place by the end of 2022.
Isn’t Watlow a competitor of Eurotherm?
Watlow and Eurotherm both provide high performing, temperature control and power control products, but generally have very different geographical and vertical market shares. We have little overlap in the way we go to market with focuses in different applications, customer sets, and channel approaches.
We expect the combination of Watlow and Eurotherm to benefit each company’s customers, generate growth opportunities for our teams, accelerate new product development, and enhance our operational capability around the world.
Will this acquisition result in products being produced in one location to be transferred to another?
There are no plans to move product manufacturing from Eurotherm to Watlow or Watlow to Eurotherm because of this acquisition.
Will this acquisition result in any products being eliminated from either manufacturing location?
There are no plans to eliminate any electronics and controls products because of this acquisition. Eurotherm will continue to produce their products in Lędziny, Poland and Watlow will continue to produce their products in Winona MN.
Will Watlow’s products be stocked in Europe?
Watlow’s products are configured made to order products similar to Eurotherm’s. As such, they are typically not stocked but shipped directly against customer requests.
Will this acquisition affect the lead times I am currently experiencing?
The worldwide shortage on integrated circuits and processors continues to impact lead times on many of Eurotherm’s products. These shortages have also impacted Watlow. While we are optimistic that our supply chain initiatives will eventually resolve these issues, we continue to experience supply constraints that are affecting our lead times. We do not anticipate that lead times will improve because of this acquisition. We will continue to update you as we have been doing all along throughout our post-pandemic recovery.
