DEMAG HOLDING SELLS LANDIS+GYR TO BAYARD ENERGY
Luxembourg/London, July 12, 2004
– Demag Holding S.A.R.L., Luxembourg,
announced today that it has signed a definitive
agreement to sell Landis+Gyr, Zug/Switzerland,
the world’s largest electricity meter
manufacturer, to Bayard Energy, the energy management
and conservation division of Australian-based
Bayard Capital, Sydney. The completion of the
transaction is subject to necessary regulatory
approvals.
Landis+Gyr is the world leader in electricity
meters and related equipment manufacturing and
enjoys the strongest brand awareness in the
industry. In fiscal year 2003, the company employed
more than 3,000 people and reported sales revenues
of €388.5m. Its products are known for
their technological excellence, high quality
and precision. Since 2002, the company has been
owned by Demag Holding, a diversified conglomerate
in the manufacturing and services industries.
Kohlberg Kravis Roberts & Co. L.P. (KKR),
London, one of the world's leading private equity
firms, owns a majority investment in Demag Holding
of 81 %. KKR acquired Landis+Gyr and six other
companies in 2002 from Siemens AG, which holds
the remaining 19 % of the holding which was
established right after the transaction. A week
ago, Demag Holding announced that it has agreed
to sell another of these seven companies, gas
springs manufacturer Stabilus GmbH, Koblenz/Germany,
to Montagu Private Equity. This transaction
is expected to be closed by end August 2004,
the Landis+Gyr transaction is expected to be
closed by end September 2004.
Dr. Horst Heidsieck, Chief Executive Officer
of Demag Holding said: “Over the last
three years, Landis+Gyr has significantly strengthened
its competitiveness. Being the only meter manufacturer
in the world with a true global presence the
company is well positioned for a successful
future. We are delighted to open the doors now
for the continued successful development of
Landis+Gyr under the ownership of Bayard Capital,
which has specific expertise in the metering
industry through existing investments. Following
the recently signed contract to sell Stabilus,
this transaction is another step ahead in our
portfolio strategy to create and realise value.”
JPMorgan was the advisor to Demag Holding for
this transaction.
Contacts:
Andrew Nicolls / Will Bowen
Penrose Financialphone:
+44 (20) 7786 4881
andrewn@penrose.co.uk
Notes to Editors:
Landis+Gyr, headquartered
in Zug/Switzerland, is the global market leader
for electricity meters. Founded in 1896, the
company was a pioneer in the metering industry.
Focussed on quality, reliability and innovation
it offers a complete portfolio of electricity
meters, metering systems, heat-meters and prepayment
solutions to energy utilities all over the world.
Landis+Gyr’s sales in fiscal year 2003
(ending September 30) were €388.5m. The
group employs more than 3,000 people in 26 countries.
For more information visit Landis+Gyr’s
website at www.landisgyr.com
Demag Holding S.A.R.L., a
diversified conglomerate in the manufacturing
and services industries, is domiciled in Luxembourg.
Initially, it comprised seven companies acquired
2002 from Siemens AG. The majority of 81 % is
held by Kohlberg Kravis Roberts & Co. L.P.
(KKR), one of the world's leading private equity
firms. The remaining 19 % are owned by Siemens
AG. In 2003, all seven businesses of Demag Holding
had a combined turnover of €3.2bn. and
20,800 employees. Most recently, Demag Holding
signed a definitive agreement to sell Stabilus
to Montagu Private Equity; closing of this transaction
is expected by end August 2004. Without Stabilus
and Landis & Gyr, the remaining companies
are:
- mannesmann plastics machinery GmbH (mpm),
Munich/Germany, the leading producer of injection
molding and extrusion machinery for plastics
manufacturing
- Demag Cranes & Components GmbH &
Co KG (DCC), Wetter/Germany, the world’s
largest designer and manufacturer of cranes
and crane accessoires for industrial applications
- Gottwald Port Technology GmbH & Co
KG, Duesseldorf/Germany, a supplier of harbor
logistics solutions and world market leader
in mobile harbour cranes
- Omnetica, Hemel Hempstead/UK, a provider
of network integration services in the UK,
France and Italy
- Argillon GmbH, Redwitz/Germany, a supplier
of technical ceramics such as isolators and
catalysts for power plants and Diesel trucks
Kohlberg Kravis Roberts & Co. L.P.
(KKR) is one of the world’s leading
private equity firms. Its investment approach
is focused on investing in attractive businesses
to implement value creating strategies. Founded
in 1976, KKR has completed thirteen transactions
in the UK and Continental Europe since 1996.
Its current portfolio consists of more than
30 companies based in the US, Canada, Germany,
Austria, France and the UK. Portfolio companies
in Germany include MTU Aero Engines, Demag Holding,
Tenovis and Wincor Nixdorf.
For more information visit KKR’s website
at www.kkr.com
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