Avtron Power Solutions Newsletter - Issue Oct 22

October 2022 Internal Monthly Newsletter

Day 1 is Here !


Leadership Message from Bhavesh

Leadership Message from Bhavesh

Avtron Power Solutions Team,

Introducing Avtron Power Solutions

Today we commemorate a big step forward: we are now officially Avtron Power Solutions.

This first step is a big one: we have moved from being a small part of a much larger corporation to establishing ourselves as an independent company and the worldwide leader in load bank solutions. We have a lot going for us:

About Hidden Harbor

Carve out Roadmap

9 Undisputed industry leader 9 Top-notch team 9 Global presence 9 Strong customer base 9 Great reputation for quality, service 9 Incredible demand for our products and solutions 9 Reliable suppliers 9 Growing markets 9 Experienced investment partner (Hidden Harbor) Bold Vision, Collective Execution

20 Frequently Asked Questions

Day 1 Org Chart

Helpful Links & Information

I have big aspirations for what we will accomplish. I hope you do, as well. We have a bold vision for the future, and each one of us has an important role to play to help us realize our full growth potential as an independent company. With that comes the responsibility to help define our identity and culture as Avtron Power Solutions. At the same time, we have a lot of work in front of us over the next year to fully carve out from Schneider. We will continue to rely heavily on Schneider support services for now, and gradually disconnect as we establish our own infrastructure.

Success will require all of us working together. Please stay engaged. Keep asking questions and sharing ideas.

How You Can Help

• Customer First – Above all, continue to take care of our customers every step of the way. • Stay focused on day-to-day operations. • If applicable, update your email signature. Instructions are available on our Teams site. • Change your voicemail greeting to reflect our new company name, if you have a company office or cell phone. • If you’re on LinkedIn, update your profile to reflect our new company name and LinkedIn page . • Share our Day 1 LinkedIn post with your network. This newsletter contains helpful information for you as we begin this exciting new chapter. Please give it a read. We’ll be sharing more information about what you can expect during our Town Hall meetings . Please plan to attend or listen to the replay. If you have any questions, please ask. I’ll share what I know and continue to update everyone on the progress of the carve-out and the ongoing performance of the business. Thanks for all you do. I’m glad and grateful to have you on the team. Bhavesh Patel

CEO Avtron Power Solutions

Introducing Avtron Power Solutions

About Hidden Harbor





Avtron builds first load bank

NJ Froment & Co Ltd Founded

Avtron Founded

Hidden Harbor Capital Partners is a private equity firm which helps create business success stories by building teams focused on execution.

Avtron Power Solutions,


We believe that:

LLC is launched

9 The most capacity in the industry and the largest 9 Custom engineering and design capabilities 9 Exceptional technology 9 Much larger global reach 9 Robust sales, service organization 9 Gold standard SIGMA controls platform breadth / depth of products


• Great businesses are built on a strong group of people where the whole is greater than the sum of the parts • Businesses succeed when they are intensely focused on executing a small set of well-defined objectives Hidden Harbor currently manages over $700 million of equity capital and is investing out of its second fund, a $450 million vehicle






Data Center

Froment introduce first load bank





• Clear market leader • Consistently good performer • Strong, growing markets and customer base • Tremendous potential for growth

SIGMA LT Launched



UK - 98 US - 78

MX - 115






UL listed permanent load banks Cleveland, U.S.

GREAT PARTNERS Great partnerships are built by focusing on the long term and doing what is right not just for ourselves but also for our partners.


ETHICAL AND PRINCIPLED We are open, honest, fair, respectful and responsible.

FOCUSSED ON IMPROVING Rather than pretending we are perfect, we strive to identify our mistakes and learn from them.

Stamford, U.K.

Avtron first to offer

We roll up our sleeves, dig in, and come to work every day searching for better outcomes.

Reynosa, Mx



EMBRACING AND DRIVE CHANGE We are continuously learning and ever evolving.

HUMILITY We believe that no matter what happens we should always be respectful of everyone.

ONE TEAM All for one, one for all. We win and lose as one team.


Froment launch SIGMA intelligent load bank control system

Avtron introduces LP high-capacity portable load banks



Carve-Out Roadmap

20 Frequently Asked Questions

These and other Frequently Asked Questions are available online as well (see Helpful Links). Over time, as more information becomes available, we will add to and update our FAQs. About the Transaction Q1. Who can I talk about this with, when, and what can I say? The transaction is official as of September 30, customers and suppliers are being informed this week. You can speak openly about the news with internal and external parties. Q2. What types of investment will Hidden Harbor make? How will these investments benefit the company? Investments will be targeted to accelerate growth. As a standalone company, Avtron Power Solutions will be able to make high-impact investments in people, processes, technology and infrastructure, such as adding, expanding and optimizing manufacturing operations, building a world-class marketing and sales force, investing in the launch of Sigma 3 and establishing critical back-office functions to support sales and operations. Q3. What are Hidden Harbor’s goals for the load banks business? Hidden Harbor’s goal is to create a success story that benefits all of us, including our partners through building teams focused on execution. They see us as the worldwide leader in load bank solutions, with the best team in the industry, a strong customer base and growing markets -- these factors position us extremely well for growth that can be accelerated through investment in our people, processes and technologies, including our standalone infrastructure as well as investments to expand our capacity and optimize our manufacturing capabilities to support growing customer demand. Q4. How involved will Hidden Harbor be or will the day-to-day running be left to Jonathan? Hidden Harbor believes that day-to-day operations is the responsibility of the Avtron Power Solutions team. Joe (in Cleveland) and Jonathan (in UK) will continue to drive the day-to-day factory operations. The Hidden Harbor team will be here to provide the investment capital for growth opportunities and partner with the Avtron team in executing the carveout, making strategic decisions and assisting any way possible, including providing any resources needed to execute the growth opportunities. How does the deal affect me? As part of a growing independent company with the financial backing and resources of a strong private equity sponsor, employees can have the confidence that comes from being part of a growing team with a singular focus on our core load bank business. Investments in engineering, manufacturing, sales, marketing and infrastructure will create new opportunities for advancement and career development. Very little changes for employees on Day 1. Your pay, benefits and employment terms remain the same for a transition period, after which we will transfer everyone to substantially equivalent programs under Avtron Power Solutions. Q6. What will happen to my job? Will there be job changes or job losses as a result of the combination? Most jobs remain unchanged on Day 1, though some roles may evolve to support the standalone business. In addition, we’re hiring several new positions, mostly in previously shared services like IT, Finance, HR, Sales and Marketing, to support the company and replace services previously provided by Schneider/ASCO. Jobs & Organization Q5.

September 2023 Exit Remaining TSAs

March 2023 Carve-Out Milestone (HR)

October 3rd 2022 Avtron Power Solutions Go-Live

September 30th 2022 Transaction Complete

Q14. Will we continue to sell under the Avtron and Froment brands? We will go to market as Avtron Power Solutions worldwide. Both Avtron and Froment brands are well known and beloved in the market and we intend to continue to leverage that equity going forward while consolidating our brand equity into Avtron, as previously discussed. Q15. Will intercompany sales continue through Schneider Electric? No; as of 1 October, all new orders for load banks will be made with Avtron Power Solutions, LLC (for orders produced in the US) or N.J. Froment (for orders produced in UK). Q16. How will we handle sales and service? As part of the transition services agreement with Schneider Electric, customers will continue to work with their existing sales and service contacts through a period of time following close. Carve-Out Approach Q17. When will the carve-out process start? The carve-out process has already begun and started weeks ago. We have formed a joint carve-out team to coordinate efforts with Schneider and ASCO. We have also brought in a number of third-party experts to help. Q18. What are the main goals of the Carve-out process? • Develop and communicate Avtron Power Solutions standalone identity (mission, vision, values, value proposition, culture and employee engagement) • Enhance senior management team to lead key sales and back-office functional area • Hit key timeline milestones: » Within 6 months: payroll and benefits » Within 12 months: USA ERP, shared service functions, Mexico operations • Limit customer, vendor and employee disruption through teamwork, communication and continuing to serve our customers to the best of our abilities every day Q19. How can I help? First and foremost, keep doing what you do best – providing exceptional quality and service to our customers and keeping our commitments to each other. Second, exercise patience and open-mindedness. Anytime companies and cultures come together, there are growing pains. It will take some time to work through them. Stay engaged, ask questions, share ideas. Q20. Can I still talk to my peers at Schneider Electric/ASCO? Absolutely! We will continue to work closely with Schneider and ASCO colleagues throughout the transition process. However, it is important that we do not share any company confidential information with ASCO/ Schneider after Day 1 unless it is specifically authorized as part of the carve-out planning. The carve-out will focus on achieving four key objectives over the next 12 months:

In the case of employees who previously worked for a Schneider Electric Shared Service (such as Marketing) but are now fully dedicated to Avtron Power Solutions, your job and reporting relationship remain the same for now. As we fully flesh out the long-term organizational structure for Avtron Power Solutions, we will talk with you in detail about any changes to job titles, roles and reporting relationships necessitated by the carve-out transition. Q7. How does this change our 2022 plans and objectives? We ask you to stay focused on current plans while we work to develop long-term plans and consolidated KPIs for 2023 and beyond. Benefits Q8. Will my benefits change? Your current benefits will continue unchanged at least through the end of plan year (Dec. 31), and possibly longer depending upon how quickly we can get new plans and programs set up for the standalone company. We are still evaluating benefit plans and programs for Avtron Power Solutions, but will share details well in advance so you can make thoughtful decisions about future coverage options. While it’s unlikely the plans will be identical to what we have today, our goal is to provide comparable levels of coverage where possible, based on the needs of the new company and our workforce. Q9. What will happen to my pay? Yes; your current years of service will carry over into the new company for purposes of seniority, PTO and vesting of benefits. Q11. Will the Paid Time Off (PTO) policy change after Day 1? No. Existing policies remain in effect for 2022. We will evaluate existing practices and determine if any changes are needed for 2023. Your years of service (seniority) will carry over into the new company for purposes of PTO calculation. Q12. What about [XYZ] policy? Will that change An exciting part of becoming a standalone company is the ability to “write our own playbook,” based on our collective experience, customer needs, and desired culture. In the coming months, we’ll be developing our own Employee Handbook, outlining all of our ways of working and employment policies, plans and programs. In the meantime, we’ll continue with what we have in place. While it’s too soon to say exactly what the future will look like, it is safe to say remote and/or hybrid work is here to stay, at least for some positions. Sales and Service Q13. What will be impact to customers? This is positive news for customers. We will continue to offer the same industry-leading breadth of products and solutions, and our commitment to quality and an outstanding customer experience will not waver. We continue to offer the most advanced and reliable load banks on the market, including SIGMA controls. New investment will allow us to expand our engineering, manufacturing and sales capabilities, providing new testing solutions while shortening lead times. We are working closely with the team at Schneider Electric and ASCO Power Technologies to ensure a seamless customer experience throughout the transition. Pay remains the same. Q10. Are we going to retain our seniority and continue with the service awards?

Day 1 Org Chart

Helpful Links

Avtron Power Solutions Website www.avtronpower.com

Bhavesh Patel

Ask Us Anything To submit a question, scan the QR code or visit https://bit.ly/AvtronPowerFAQ (please note the link is case sensitive)

Director of Sales & Service

Jonathan Clarke

Steve Shoureas

Joe Wegas

Nicholas Burnham

To view the latest Frequently Asked Questions, bookmark these links: https://bit.ly/AvtronAnswers

Carve-Out Communications Teams Site We will post updates and other resources on a dedicated Teams site:

US Manufacturing, NAM Supply Chain, US Capacity Planning, NAM Logistics, US Facilities

EMEA Field Sales, National Accounts, Application Support, Project Management

Stamford Manufacturing, Sup ply Chain, Capacity Planning, Logistics, Facilities, Field Service

Global Engineering, NPD, Portfolio Rational ization, Order Engineer ing, Pricing

Americas Field Sales, National Accounts, Application Support, Project Management, Field Service

Avtron Carve-Out Communications Group


John Sanders Interim CFO

Erica Holt

Julie Barratt

Director Marketing

Director IT

Stamford UK HR, Benefits, Payroll, Employee Rela tions, EHS, Training

US HR, Benefits, Payroll, Employee Rela tions, EHS, Training

Global Marketing, Product Management, Customer Experience

Global Hardware, Net works, Software, Com munications Platforms, ERP and other Tools

Global Finance, Ac counting, AR/AP, Budg ets, Planning, Analytics


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