Swiss firm sale to benefit O’Reilly

LANDIS+GYR AG, a Swiss electronic metering company, received bids from Japan’s Toshiba Corp and two private equity firms in a sale that may fetch about $2 billion (€1.4bn), according to two people with knowledge of the matter.

A sale of the business will result in a major windfall for Irishman Cameron O’Reilly, chief executive of the company he purchased in 2004 as head and founder of Australia-based Bayard Capital. Bayard’s backers include some of Australia’s wealthiest families and the family of Mr O’Reilly — his father is former Independent News and Media chairman and chief executive Tony O’Reilly.

TPG Capital and EQT Partners AB submitted proposals by the May 9 deadline, and Landis+Gyr’s board, according to the three people, who declined to be identified because the details are private.

Other companies including General Electric and Bain Capital LLC dropped out of the process, said one of the three.

Founded in 1896, Landis+Gyr operates in 30 countries, with about 5,000 employees offering meters for clients including E.ON AG, Centrica’s British Gas unit and PG&E Corp.

The company makes smart meters that allow utilities to check energy use remotely and can be connected to equipment that shows customers when rates are highest.

“The company’s client network is probably attracting bidders like Toshiba,” said Masahiko Ishino, an analyst based in Tokyo.

“For Japanese firms such as Toshiba, an acquisition is a quick way to expand in the smartgrid-related businesses after focusing mainly on information technology operations,” Mr Ishino added.

In January, Landis+Gyr was chosen by State Grid Corp of China to help build the world’s largest smart grid, agreeing to supply more than 10,000 commercial and industrial advanced electricity meters in six Chinese provinces.

Tokyo-based Toshiba, which lost a bid for Areva SA’s powergrid business in December 2009, is seeking to expand its energy operations to transmission equipment countries such as the US invest in upgrades of their electrical systems.

Landis+Gyr is working with Credit Suisse Group AG and Lazard Ltd to examine options, including a sale.