(BFM Stock Exchange) – The specialist in electrical equipment announced Thursday evening the acquisition of the company Avtron Power Solutions, an American company achieving 70% of its turnover in the United States, especially in the Data Centers. The latter segment allowed the company to display two -digit growth.

Behind Société Générale (+111.6%) and Thales (+95.74%), Legrand simply signs the third highest increase in CAC 40 since the start of the year, with a jump of 52.7%.

Several elements have fueled the impressive rally of the electrical equipment specialist. The title could be carried out by first signals for the recovery of construction in Europe, a segment to which the company remains very exposed.

Especially Legrand took advantage of the Data Centers boom, itself carried by the rise of artificial intelligence. Like Schneider Electric, Legrand designs and markets a series of products for data centers (processors, circuit breakers, wiring solutions, connectors, wall boxes, etc.).

The sumptuous expenses of “hyperscalers” (Amazon Web Services, Google Cloud, Microsoft Azure) in the datacenters have therefore been passed on to the activity of the company. And on its growth.

>> Access our exclusive graphic analyzes, and enter into the confidence of the trading portfolio

Strong growth in the data centers

In the second quarter of 2025, Legrand recorded an increase in its revenues of 10.1% in comparable data, bringing the group to raise all of its objectives for 2025. The group does not isolate the performance of its products related to data centers but stressed that this segment had drawn both its overall growth and that of the “North and central” region (22% in the second quarter).

Recently switching to purchase on action, Bank of America believes that articles dedicated to data centers represent around a quarter of the company’s revenues, and should record growth between 10 and 25% until 2030.

Legrand has decided to strengthen in this segment even if it means paying relatively expensive. The resident of the CAC 40 announced Thursday evening after the closing of the market a major acquisition with this in mind.

The company intends to buy the American group AVTRON POWER SOLUTIONS, specializing in charges (“load banks”), of the electrical devices used to put into service, maintain and verify the sources of electrical energy.

This company generates 70% of its revenues in the United States, especially in data centers, which represents almost half of its turnover. Legrand explains that this company based in Cleveland has developed in this vertical “a leading portfolio from Load Banks, including liquid cooling options (coolant) increasingly popular to meet growing demand in high density datacenters for artificial intelligence”.

Avtron Power Solutions also designs products for other markets such as health establishments and renewable energy systems.

A not so high price

The company employs 600 people in North America and Europe and is expected to achieve $ 350 million (300 million euros) in turnover in 2025.

This redemption will be made based on corporate value (equity and debt) of $ 1.125 billion or around 960 million euros.

If this amount is relatively high for Legrand, it does not scare the scholarship. This Friday, the group’s action is advancing 0.5% around 11:20 am after opening up more than 2%.

“Despite the high price, we believe that this transaction will be welcomed favorably because considered to be the continuation of the history of invigorated growth of the company,” said Royal Bank of Canada.

The Canadian Bank notes that the price granted by Legrand translates a multiple of business value on expected turnover of 3.2 against 4.2 for Legrand.

“Although it is not cheap, the price does not seem excessive compared to the Legrand multiple,” deduces the Canadian bank.

“In addition, as indicated by the high performance of the Legrand action course this year, we believe that investors have been seduced by the history of growth (told, editor’s note) of the company, in particular in the field of data centers,” she continues. “This operation further strengthens exposure in this area, and unless a substantial slowdown in the hyperscalers’ investment spending, we do not see a reason to complain,” concludes Royal Bank of Canada.

The establishment estimates that this acquisition will increase Legrand’s income by approximately 3 percentage points.