Schneider Electric has taken over the German packaging controls specialist Elau by buying the remaining 53.5% stake in the company that was still owned by family members. Schneider became a minority shareholder in the company last year.

The move is part of Schneider`s strategy to establish itself as a global leader in packaging machinery. Last year, Elau`s sales grew by 24% to reach €39.8m, with an operating margin of 14.3%. This year, the company is expected to generate sales worth €50m.

The deal was announced by Alain Marbach, Schneider`s vice-president for industrial automation (above, left), and Patrik Hug (right), Elau`s executive vice-president for international sales.

Elau will continue to operate autonomously from its base in Marktheidenfeld, Germany. The company, which produces servo motors, controls, drives and software tailored for the packaging industry, employs 275 people. It has subsidiaries in France, the US and the UK, where it moved into new premises in Milton Keynes earlier this year.

The Elau acquisition, which is subject to antitrust review, supports three key aspects of Schneider`s strategy:

• accelerating its growth in the packaging machinery OEM market;

• widening its motion control portfolio; and

• strengthening its presence in the European and North American industrial automation markets.