Target Information

AURELIUS Private Equity has agreed to acquire the EMEA metering business of Landis+Gyr, which is publicly listed on the SIX Swiss Exchange, for an enterprise value of $215 million. This business generated over $600 million in revenue during FY24 and employs around 2,700 people across five production sites located in Europe, the Middle East, and Africa. Its diverse portfolio includes residential and industrial electricity, gas, and thermal metering solutions, along with integrated software and services.

Founded on the principles of Swiss precision engineering, Landis+Gyr EMEA has established a strong reputation for quality and reliability over its century-long legacy. AURELIUS plans to leverage its in-house operational advisory team, AURELIUS WaterRise, to collaborate closely with the management team on the carve-out initiative, aiming to enhance both revenue growth and profitability within the business.

Industry Overview in the Target's Country

The metering industry in the EMEA region is witnessing substantial growth, driven by increasing demand for energy-efficient solutions and advancements in smart metering technology. Various governments are implementing regulations to support the transition toward smart grids and sustainable energy usage, thus propelling the need for reliable metering solutions.

Moreover, as energy markets evolve, there is a growing willingness among utilities and consumer sectors to invest in advanced metering infrastructure that enables better management of energy consumption and enhances reporting accuracy. This trend is further invigorated by the necessity for utilities to reduce operational costs while improving customer service through technology.

Furthermore, the shift towards renewable energy sources has spurred innovation within the metering sector. Companies are increasingly focusing on developing smart solutions that facilitate integration with renewable energy sources, which is crucial to meeting sustainable development goals. This scenario presents numerous opportunities for established players like Landis+Gyr EMEA to expand and innovate their product offerings.

As these trends continue to gain traction, the EMEA metering industry is poised for significant transformation, creating an environment ripe for investment and growth. With its strong positioning and expertise, Landis+Gyr is well placed to capitalize on these burgeoning market dynamics.

The Rationale Behind the Deal

AURELIUS’s acquisition of Landis+Gyr’s EMEA business aligns with its strategic focus on identifying and investing in companies with significant operational improvement potential. By targeting this carve-out opportunity, AURELIUS seeks to enhance the performance of a well-established business within a growing industry.

The partnership with the management team and skilled employees aims to unlock additional value, driving both revenue and profitability through operational efficiencies and innovation. AURELIUS recognizes the favorable market conditions and is eager to harness Landis+Gyr’s expertise in metering technology to strengthen its footprint in this critical sector.

Investor Information

AURELIUS Private Equity is a well-regarded investment firm known for its focus on acquiring and revitalizing companies facing operational challenges or needing restructuring. With a history of successful carve-out acquisitions, AURELIUS possesses the expertise and resources necessary to enhance corporate performance and create lasting value.

The firm has demonstrated its ability to identify attractive investment opportunities, even in a challenging M&A environment. This particular acquisition underscores AURELIUS's commitment to backing businesses that are well-positioned to thrive in favorable market conditions, particularly within the industrial sector.

View of Dealert

The acquisition of Landis+Gyr's EMEA business by AURELIUS Private Equity represents a strategically sound investment opportunity. Given the momentum in the metering industry, driven by advancements in technology and regulatory support for energy efficiency, AURELIUS is well-positioned to capitalize on these favorable trends.

Additionally, AURELIUS’s established approach to improving operational performance through its advisory team enhances the potential for significant returns on this investment. Their expertise can potentially transform the metering business into a more agile and innovative entity in the market.

However, the success of this acquisition hinges on AURELIUS’s ability to navigate market conditions and execute on their strategic vision effectively. Continued collaboration with the existing management team will be crucial in realizing the business’s full potential.

In conclusion, the deal appears to be a promising investment for AURELIUS, given the strategic fit, market dynamics, and the operational expertise available to execute transformational initiatives. If successful, this acquisition could serve as a robust model for future investments within the sector.

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