In a significant move to bolster its presence in the Australian and New Zealand region, Legrand, a global leader in electrical and digital building infrastructure, has acquired Australian Plastic Profiles (APP), a prominent player in the Australian PVC conduit market.
The acquisition marks Legrand’s largest investment in the region since 2007 and underscores its commitment to expanding its domestic operations and enhancing its industry footprint.
APP, a leading manufacturer of top-tier PVC conduits used in electrical and plumbing applications, reported nearly AUD 170 million sales in the fiscal year 2024. With a strong presence in PVC extrusion and injection moulding, APP has established itself as a reliable partner for small- and large-scale projects.
In an interview with Australian Manufacturing, Palash Nandy, CEO of Legrand ANZ, shared his insights into the acquisition and its implications for the industry.
Integration and Branding
APP is a highly successful and profitable company with strong brands and market leadership. According to Nandy, a key factor in Legrand’s decision to acquire APP was the complementary nature of its product ranges.
APP’s strong distribution network and leadership position in the Australian PVC conduit market across electrical and plumbing segments provide a strong distribution overlap with Legrand’s existing operations.
“This allows both companies to benefit from compelling business synergies, in addition to offering an enhanced suite of solutions that improve lives for our customers,” Nandy said.
With around 250 employees and a solid national presence in Australia, APP boasts a diverse project portfolio that spans multiple sectors, including residential, commercial, industrial, healthcare, utilities and infrastructure projects.
APP operates two brands: AussieDuct, which specialises in electrical applications, and Pipe King, which serves the plumbing sector. The two brands will continue to operate as usual.
Boosting manufacturing capabilities and product range
The APP acquisition is expected to significantly enhance Legrand’s product range in the ANZ market, particularly its Essential Infrastructure portfolio.
By investing in a company whose products are fundamental to the electrical and plumbing infrastructure of any building, Legrand can now offer a more comprehensive suite of solutions for its customers. This, in turn, will enable the company to achieve a better balance between its residential and non-residential business, further solidifying its position in the market.
Commitment to local manufacturing and innovation
The acquisition reflects Legrand’s dedication to fostering a strong local manufacturing presence in Australia. This commitment is also reflected in Legrand’s recent regional strategic acquisition, with the purchase of VASS Electrical Industries in June 2024.
The acquisition of APP is particularly noteworthy, as it brings a substantial manufacturing facility in Caringbah into Legrand’s operations. This facility, according to Nandy, complements Legrand’s existing investment in local manufacturing, which includes facilities in the Sydney suburbs of Prestons and Ingleburn.
“With three local manufacturing facilities, one R&D centre and nine warehouses, Legrand is uniquely placed to design, manufacture and distribute products and solutions that are tailored for Australian needs and market habits. Close to 70% of our combined revenue is via products manufactured in Australia. Legrand Australia now employs close to 500 people in Australia,” the Legrand ANZ CEO explained.
As the two companies come together, APP and Legrand bring a combined strength and expertise that is expected to benefit customers and stakeholders alike.
“The existing leadership team of APP will continue to drive APP’s business growth in the future.”
Nandy also highlighted the benefits of the acquisition, stating that “the combination of the strengths of Legrand and APP is good news, since this leads to a wider suite of solutions to all customers of both APP and Legrand resulting in better business opportunities for all stakeholders.”
