Emerson (EMR) acquired Avtron Loadbank, a leading designer and producer of high quality load banks and other testing systems and services for standby power generation, uninterruptible power supply (UPS) and other power equipment industries.

Avtron has an experience of 50 years in this field and has been providing complete solution for testing power supply systems which includes advanced data acquisition, control, and monitoring technologies. The terms of the deal have not been disclosed.

Avtron Loadbank is a global leader and industry technology expert in the design and manufacture of high-quality resistive and reactive load banks, neutral grounding resistors and industrial power resistors. Its products are primarily used for factory testing, commissioning, service and periodic exercising of standby emergency power systems, which include diesel generator sets, gas turbine generators, UPS systems and back-up battery systems.[1]

While, Emerson’s Network Power segment designs, manufactures, installs and maintains products providing “grid to chip” electric power conditioning, power reliability and environmental control for telecommunications networks, data centers and other critical applications. It also provides comprehensive data center infrastructure management solutions.

Products in this segment include uninterruptible power systems, embedded power supplies, embedded computing systems, precision cooling, inbound power systems, integrated data center monitoring, and control devices and software, plus 24-hour service. In 2011, sales by geographical presence for this segment were U.S. and Canada 39%, Asia 33%, Europe 19%, Latin America 6% and Middle East/Africa 3%.

The business will be merged with Emerson’s ASCO Power technologies brand, under the Network Power segment. Commenting on the acquisition, management at Emerson stated that Avtron is primarily known for its innovative and high-quality equipment and that their existing product range and global presence complement Emerson’s Network Power segment well.

Therefore, the acquisition is believed to be a perfect fit with the existing services network of Emerson. The acquisition of Avtron also compliments the company’s synergies in sales, marketing, engineering and other key areas.

Emerson currently holds a Zacks Rank #3 which implies a short term Hold rating on the stock.

To read this article on Zacks.com click here.

Zacks Investment Research