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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.
Will the combined business offer two separate controller lines – Eurotherm and Watlow?
Yes, both Eurotherm and Watlow branded products will be offered.
Will the Eurotherm brand name eventually be absorbed into the Watlow brand?
Both brands have very solid brand equity. Currently, the intention is to offer both Watlow and Eurotherm branded products.
Does this mean that my current Eurotherm sales engineer will continue to call on me?
Yes. It is business as usual. Your current Eurotherm sales representative will continue to call on you and will be available to answer any questions that you have.
Will we still have the same structure and customer support team helping us?
Yes. There are no plans to change any of the support teams you are currently working with because of this acquisition.
We do anticipate the combined companies will enhance the support that we will be able to provide to our customers.
Will my current Eurotherm sales engineer now be able to offer me Watlow products?
Yes. Following the completion of the acquisition your Eurotherm sales representative will be able to offer you both Eurotherm and Watlow products.
If I am already doing business with both Eurotherm and Watlow how will my business change?
It is business as usual right now. We certainly aspire to provide the customer experience that you desire in the future and will work with you to learn what that may be.
How will the company provide technical support in Europe for Watlow products?
Watlow has a global support organization. We will develop a plan to leverage this capability with the Watlow team after approval and completion of the acquisition.
If I have other questions related to this acquisition who can I contact?
Please direct all questions related to this acquisition to your Eurotherm sales representative.
How will supply chain relationships be affected from this acquisition?
There are no changes to existing supply chain relationships because of this acquisition. Please continue to work in the same way with the current relationships and processes that have been in place. We will inform you if changes to existing processes or relationships are necessary.
Do we continue to call on both Eurotherm and Watlow?
Yes. There are no changes to existing contacts because of this acquisition. Please continue to communicate with both companies in the same way you have done and until notified otherwise. We will inform you if changes to existing processes or relationships are necessary.
If I have other supply chain questions related to this acquisition who can I contact?
Please contact your current Eurotherm or Watlow purchasing representative with any questions or concerns related to this acquisition.
If I am a supplier for Eurotherm today, do I need to sign up to be a supplier to Watlow, or the other way around?
At this stage, there are no changes to existing supply chain processes or relationships because of this acquisition. Please follow the standard processes for becoming a new supplier to either Eurotherm or Watlow. We will inform you if changes to existing processes or relationships are necessary.
How do I sign up to become a supplier at Eurotherm / Watlow
At this stage, there are no changes to existing supply chain processes or relationships because of this project of acquisition. Please follow the standard processes for becoming a new supplier to either Eurotherm or Watlow. We will inform you if changes to existing processes or relationships are necessary.
I am a supplier for both companies and have different payment terms, what will happen?
At this stage, there are no changes to existing supply chain payment terms. Please continue to operate within the same terms and conditions that are currently in place. We will inform you if changes to existing payment terms are required.
I am a supplier for both companies. Will I continue to have a contact at both Eurotherm and Watlow, or will this be managed by one buyer?
At this stage, there are no changes to existing contacts because of this acquisition. Please continue to call on both companies in the same way you have done until notified otherwise. We will inform you if changes to existing processes or relationships are necessary
My Eurotherm supply agreement is between my company and Schneider Electric, have those been assigned to the new company?
At signing and for a period following completion of the acquisition, there will be no changes in relationships or daily operations as the Eurotherm supply chain will continue to be supported by Schneider Electric procurement teams through a transitional services agreement.
Do any Eurotherm processes (forecasting, invoicing, PO, T&Cs etc) change?
At this stage, there are no changes to existing processes. Please follow the standard processes for forecasting, invoicing, purchase orders and terms and conditions for both Eurotherm and Watlow until further notice. We will inform you if changes to existing processes are necessary.
Will my contacts at the Schneider level stop handling Eurotherm? If so, who is my new contact?
At signing and for a period following completion of the acquisition, your contacts will remain the same as the Eurotherm supply chain will continue to be supported by Schneider Electric procurement teams. This provides time to learn more and determine how best to integrate the businesses. We will inform you when more information is available.
Is the legal entity changing?
At this stage there is no change. We will inform you when more information is available.
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