Montagu Private Equity has agreed to sell its stake in meter manufacturer Actaris for an undisclosed amount to LBO France. LBO France becomes the new majority shareholder with the balance held by the Actaris management.

Actaris is a worldwide leader (outside of the USA) in the design and manufacture of meters and associated systems for the electricity, gas, water and heat industries. It has market shares of between 20 and 25 percent, depending on the sector, and a highly diversified international customer base. 

Montagu Private Equity, shareholder in Actaris for two years, has successfully pursued a strategy of refocusing on its core businesses, rationalising the cost base, launching innovative products with high added value and expanding its international distribution network. As a result, the company has grown its market shares and achieved sustained growth in earnings. For the year ending 31 December 2004, Actaris reported revenue of €650 million and EBITDA of €94 million, up 7 percent on the previous year. In all, it employs more than 6,000 people in more than 30 countries in Europe, South America and Asia.

The current management team will remain in place after the deal, thus ensuring the continuity of a strategy that has made Actaris so successful.

Denis Leroy and Sylvain Berger-Duquene of Montagu Private Equity said: "We are delighted with the success of our partnership with the Actaris management team over the past two years. Thanks to a strong product offering, sustained R&D spend and worldwide presence, Actaris is now ideally placed to benefit from growing demand in the market for "smart" meters".

Robert Daussun of LBO France said: "This secondary LBO is unique as LBO France becomes once more the majority shareholder of Actaris, thus renewing its confidence in a management that always managed to deliver and a group that holds a worldwide market position with quality products that secure its future."

The transaction is subject to the approval of the relevant competition authorities.