Looking to round out its power management portfolio, Emerson Network Power has picked up NSW-based rack distributor, Ricon, for an undisclosed sum.
Ricon is the exclusive distributor of Knurr rack products in Australia. Emerson acquired the German vendor last year. Unlike other international geographies, Knurr did not have a Australian presence and instead relied on a local distributor, Emerson managing director, David Scott, said.
"We've been working on this [acquisition] for a while now - it will be a great addition to the organisation and team here," he said. "Ricon is a small group but is very knowledgable about the rack business: they have a good customer base, have been established for about 20 years and have a good reputation."
Scott said there was minimal customer overlap between the two organisations. New customers working with Emerson for the first time include building consultancy firm, Medland Mitropoulos.
"Over the last 12 months, we have worked together and had good leverage across the businesses. With the acquisition, we'll be able to pull more customers through both ways," he said.
"Ricon has been strong in the NSW market... but they have not had the reach in the organisation to really grow. We will look to leverage our geographic reach and sales operations across the country and take this nationally."
All of Ricon's staff will be retained, including six to eight manufacturing and 10 sales and back-office support personnel. Ricon's co-founders, Richard Wixon and Steve Ververis, will also stay on.
Scott said the company would run independently for the short term to tie up loose ends. Emerson planned to retain the Knurr brand long-term, similarly to its Liebert range of power protection hardware.
"The acquisition is really important because it means we can now offer a total end-to-end power solution and address network protection needs," he said.