Montagu Private Equity has led and arranged the secondary management buyout of Actaris, the leading world-wide manufacturer of metering systems from LBO France for a consideration of €420 million (excluding transaction costs and working capital funding). The transaction was financed through a combination of institutional equity provided by Montagu Private Equity and Actaris' management, as well as senior debt from Mizuho Corporate Bank, Ltd. The acquisition is subject to regulatory approval.

Previously known as Schlumberger-RMS, Actaris was purchased by the French Private Equity house LBO France from Schlumberger in November 2001. It is the leading world-wide producer 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 has 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 these markets reliability, accuracy and safety are key purchase criteria for its clients who are principally the major world utilities. Its growth stems from the developed countries, where existing meters are progressively replaced by higher value devices, as well as from developing countries where the increasing water, gas and electricity consumption generates strong demand for new installations.

Over the last two years, Actaris has 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 employs more than 6,500 people and operates plants in more than 30 countries in Europe, South America and Asia.

The management of the company will remain unchanged, thus ensuring the continuity of a successful strategy. The whole management team will roll-over in the new transaction the bulk of the equity participation they had in the company.

Denis Leroy and Sylvain Berger-Duquene from Montagu, said: "We are delighted to support Actaris' management team, who have an impressive track record in building a strong world-wide and profitable leader in the metering industry. After the last few years focussed on reorganising the company, the management's aim is to build on Actaris' strong market positions to benefit from growing meter demand, and to seize selected acquisition opportunities to expand in new areas."