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Manufacturer News: 4.19.2011

Published 4/19/2011 2:30:21 PM

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Energy Star: Lighting Update

Effective Oct. 1, to qualify for the Energy Star label, light fixtures will need to increase efficiency 30% above currently qualified fluorescent-based fixtures. In 2013, performance requirements will increase further, providing 40% higher efficiency compared to currently qualified models.

More here.

UL On Ground Rods (April 14) 

Underwriters Laboratories (UL) is notifying Authorities Having Jurisdiction (AHJs), electrical contractors, electricians, and retailers that the ground rods identified below bear unauthorized UL Marks for the United States and Canada. These products have not been evaluated by UL to the applicable Standard for Safety for the United States and Canada and are not authorized to bear the UL Mark.  

From the release: The ground rods may have been sold by electrical distributors throughout the United States.

More here.

Tyco & Schneider???

Make no mistake: The company electrical people formerly knew as “Tyco” is not what it used to be. This does not lessen (well, not much) the news last week that Schneider Electric might be interested in buying Tyco International (stock symbol TYC).

To review:

  • Tyco Electronics is a separate company (stock symbol TEL). It was spun off from the parent company in June 2007—as was a healthcare subsidiary, Coviden.
  • Tyco’s Electrical and Metal Products business is 49%-owned by Tyco International. The majority stake is owned by Clayton, Dubilier & Rice, the private equity company that also owns a piece of HD Supply & Rexel. If you missed this more-recent development, see this brief December 2010 report

Developments in the week of April 11-15:

  • Schneider was said to be offering roughly $30 billion to buy Tyco (according to Bloomberg.com, April 12).
  • Schneider said that it’s “not currently” talking to Tyco about buying it (Bloomberg.com, April 13). Much was made of the two words in quotes.
  • Chances that Schneider will buy Tyco “are declining, according to people close to the situation”—as reported April 13 by David Faber of CNBC.
  • If Schneider can’t or won’t do the deal—or even if it will—someone else might come out of the woodwork, according to an April 12 Reuters report. Who? Honeywell, Siemens, and United Technologies were named.
  • Are Tyco shareholders excited? Maybe. More than 100 million shares of TYC stock changed hands last week, according to data published on Yahoo! Finance. Average daily volume (averaged over a three-month period) in the stock was usually around 5.5 million shares.
  • Shareholders of Schneider reacted negatively, dropping the stock down to 110 euros on the Paris exchange as of Friday April 15. Schneider’s stock closed out March around 120.

Factolitos floating around:

  • The acquisition of Tyco by Schneider would be the largest takeover—ever—by a European industrial company.
  • Assuming the deal went through and Schneider didn’t sell off pieces and parts of Tyco (probably a bad assumption), Schneider’s sales in North America would more than double.
  • ADT, a unit of Tyco, “estimates that it has 11% of the $68 billion global [security] industry,” Bloomberg.com reported.
  • Note that Tyco’s home country (where it is “domiciled,” as is commonly said) is…Switzerland.
  • What about GE? According to Reuters, it (and United Technologies) “have made clear they do not have the appetite for huge deals right now.”

ManuFacts

Coleman acquires—is this a repeat of the moldy-oldy news that Coleman Cable had acquired Technology Research? Nope: On April 4, Coleman said it had acquired The Designers Edge at a cost of $10.9 million cash. The purchase, Coleman said, expands its portfolio across a wide range of lighting product categories, including industrial, work and utility, as well as products for security and landscape applications.

            Incidentally, the stock market likes what it sees from Coleman Cable (stock symbol CCIX). It closed out 2010 with shares at $6.28. Since April started, the stock’s price has been bobbing up above the $9 mark—even crossing $10 for a moment on April 4.

Cree & OSRAM—they’ve signed “a comprehensive, worldwide patent cross-license agreement” that “underscores each company’s commitment to speeding the adoption of LED lighting while respecting the value and importance of each company’s intellectual property.” More.

Schneider did buy something—in an all-cash deal announced as March ended, Schneider Electric paid $111 million to acquire Digilink from owner Smartlink Network Systems of India. With a manufacturing facility in Goa (India) and 92 employees, Digilink’s sales of structured cabling products were said to total roughly $34 million in 2010.

            Some reports and headlines have stated that Schneider acquired Smart Link outright (such as this one, from Greentech Media)—but that’s not what has happened. The piece may be worth reading, however, as it compares Schneider’s strategy with those of ABB, GE, Honeywell, and Johnson Controls.

            [See also Greentech’s March 24 report on Schneider’s acquired of Summit Energy.]

LED Notes

Cheaper?—from Technology Review (MIT’s magazine): LEDs are conventionally made on a relatively costly substrate of silicon carbide or sapphire. Bridgelux has come up a new process that takes advantage of existing fabrication machines used to make silicon computer chips, potentially cutting LED production costs by 75%, according to the company.

Firefly—no, not Rufus T.,but Firefly LED Lighting, a member of the Austin, Texas, Technology Incubator. In March, it obtained $3 million from the State of Texas Emerging Technology Fund. More.

“Freedom from binning”—that’s what Philips Lumileds is promising (release).

Hybrid—the new “Advanced Hybrid Lighting Platform,” from Orion Energy Systems, reportedly “combines the best of both high-intensity fluorescent and LED technologies in one fixture.”

License for LED fluorescent tube replacements—ilumisys granted the license to Lumenor Energy Services (Bay Harbor Island, Fla.), described as a “qualified LED lighting retrofit company.”

LED litigation—there’s nothing new here, tedmag.com is just catching up: In August, Altair Engineering (parent of ilumisys) brought a patent infringement suit against LEDS America. According to a Cleantechies.com blog, the suit alleged that the LED-O T8 Replacement Tube product infringed on two Altair-owned patents.

            More: If you have enrolled on Scribd.com, you can take a look at the six-page Altair complaint, here.

OSRAM buys Siteco—this German company (acquired from Barclays’ Private Equity) “was originally part of Siemens” (parent of OSRAM), according to LEDS Magazine.

Six-inch wafers reduce costs—so says Gerson Lehrman Group, here. OSRAM will move from four-inchers later this year.

Target: Large LED installations—Elemental LED (release) claims to offer “installation tutorials and products for larger LED lighting installations.”

U.S. can keep LED manufacturing home—so claimed this article in Crain’s Cleveland Business.

 

© 2012 The Electrical Distributor. All rights reserved.

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