French firm Legrand buys NSW plastics manufacturer

Legrand Australia New Zealand chief executive Palash Nandy. Picture: Scott Ehler

Global electrical and digital infrastructure business Legrand will double its size in Australia with the acquisition of NSW’s Australian Plastic Profiles following two major deals in the region in the past year.

The Paris-listed Legrand, which turned over €8.4bn in 2023, bought out busway power distribution solutions business VASS Electrical Industries in June and New Zealand cable management solutions maker Mechanical Support Systems in December.

The acquisition of Caringbah-based APP, which turned over $170m in the most recent financial year, would bring staff numbers across Australia and New Zealand to about 500, Legrand Australia New Zealand CEO Palash Nandy said.

Mr Nandy said the acquisitions had strong fundamental tailwinds bolstered by the expansion of data centres and the increasing digitalisation of buildings, and there would be a lot of synergies between Legrand’s existing Australian footprint and APP.

“What APP does is fundament to that (digital) infrastructure,’’ he said.

“It’s a strong leader, it’s a very well run organisation, and most importantly it helps with our strategy of growth and local manufacturing in Australia.

“It’s going to dramatically change the scale of our business.

“Investing in a company whose products are fundamental to the electrical and plumbing infrastructure of any building enables Legrand to have more balance between residential and non-residential business.’’

APP’s managing director and owner, John Hills, and fellow director Trevor Chivers will retire as part of the deal, but Mr Nandy said the second generation would continue on in the business which was important for Legrand in terms of business continuity and retaining expertise.

Mr Hills said there would be significant benefits for the local operations.

“Partnering with a global company and market leader such as Legrand allows us to benefit from their international footprint, robust investment in research and development, and strong industry presence,’’ Mr Hills said.

“Legrand shares our focus and commitment to providing products and solutions that add value for our customers.’’

Mr Nandy said 40 per cent of Legrand’s turnover came from locally manufactured products, but that would increase significantly following the APP deal.