CG Carlyle Group Inc

By Noemie Bisserbe

PARIS--Schneider Electric SA (SU.FR) said Thursday it had entered exclusive negotiations with Carlyle Group LP (CG) and PAI Partners for the sale of its Custom Sensors & Technologies operations, in a potential deal valuing the business at around 650 million euros ($900 million).

Under the proposed agreement with the private equity firms, Schneider said in a statement it would reinvest about $100 million in CST and retain a 30% stake in the company.

CST designs and manufactures sensing, control and motion products. It generated revenue of about $600 million in 2013, said Schneider.

The proposed deal is currently being reviewed by the French company's works councils.

-Write to Noemie Bisserbe at noemie.bisserbe@wsj.com

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