The leading world-wide manufacturer of metering systems from LBO France
In June 2003, Montagu led and arranged the secondary Management Buyout of Actaris the leading world-wide manufacturer of metering systems from LBO France, a French Private Equity house, for a total consideration of €525 million.
Previously known as Schlumberger-RMS, Actaris was the leading world-wide producer of a wide range of metering systems used to measure utility flows. Through a presence across all product ranges (water and heat, gas and electricity meters, residential and industrial) and all regions, the group had achieved world-wide leadership with market shares ranging from 20% to 25%, a critical size in all segments, and an attractive diversification across products, countries and clients.
In the years before our acquisition, Actaris had reorganised its operations focussing on the most profitable markets and product lines. This led the group to achieve sales of c. €650 million for the year to December 2002, and an EBITDA of €88 million. It employed more than 6,000 people and operated plants in more than 30 countries in Europe, South America and Asia.
The whole management team rolled-over in the new transaction the bulk of the equity value they had in the company, thus demonstrating their commitment to the group's success.
Montagu wanted to make the investment because of the in depth strength of the management team and their belief in the business, demonstrated by their significant personal financial investment. Whilst LBO France was able to crystalise profit on their investment, we were able to secure an attractive deal as the management were only prepared to participate on a basis that made sense for their reinvestment.
Actaris' management continued to implement its strategy of reinforcing the business' position in developed countries by introducing value added and innovative meters, that tended to replace the existing installed base and by expanding its operations in developing countries, where increasing water, gas and electricity consumption generated strong demand for new installations.
In June 2005 Montagu sold its stake in Actaris for an undisclosed amount to LBO France. LBO France became the new majority shareholder with the balance held by the Actaris management.