Toshiba beats PE to acquire Landis+Gyr
Japanese electronics giant Toshiba Corporation is set to wholly acquire utility meter-reading developer Landis+Gyr AG from Australian investment firm Bayard Capital for $2.3 billion, out-bidding private equity suitors TPG and EQT Partners.
Swiss-based Landis+Gyr was purchased by Bayard Capital in 2004 for an undisclosed amount. At the time, Bayard bought the company from Demag Holding, which was 81%-owned by KKR and 19%-owned by Siemens. Landis+Gyr further counts Australian mid-market PE firm Propel Investments as one of its minority owners. Its 23% stake sale to Toshiba marks its third exit in six months, the firm announced.
In addition to Propel, Landis+Gyr's other shareholders include New York-based investment bank DLJ Merchant Banking Partners, Allianz Capital Partners and Belgian investment company Sofina.
Landis+Gyr is one of the world's largest smart-metering companies, specifically producing and delivering devices to monitor energy consumption in households and buildings - a key area given markets' interest in adopting green initiatives. According to a release from the companies, the world's market for smart grids is set to grow six times to JPY5.8 trillion ($71 billion) over the next 10 years.
Landis+Gyr currently claims more than 8,000 utility customers in 30 countries worldwide. According to its website, the company reported $1.4 billion in turnover in 2008. Under Toshiba, Landis+Gyr is set to remain a standalone platform, and will continue to hold its properties, equipment, employees and trade mark rights, companies confirmed. Landis+Gry will also look to boost its orders to Europe, the US, China, India and Brazil.
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