O’Reilly and son may net €224m

THE sale of Swiss electronics company Landis+Gyr to giant Japanese group Toshiba for $2.3 billion (€1.6bn) could net Tony O’Reilly and his son Cameron as much as €224 million.

Landis chief executive Cameron O’Reilly holds an estimated 7% equity stake in Landis and it is believed his father has a similar holding.

Since 2004 Landis has been owned by an investment group called Bayard Capital, which was established in Australia by Cameron O’Reilly to move into the green energy space with an initial investment, believed to be no more than US$50,000 at the time.

It is not known what Bayard paid for Landis, but reports suggest he got the backing of some of Australia’s most powerful business people when he made the bid.

The group has not confirmed the holdings of the two O’Reillys but it was put at 14% by sources.

Spokesman for former Independent News and Media chairman and chief executive, Tony O’Reilly, was not available for comment last night.

Bayard, which invests in energy and water technologies, rebranded all of its properties under the Landis+Gyr name.

The Swiss firm’s earnings before interest, taxes, depreciation and amortisation came to $215m in the year to March 2011, on revenue of $1.59bn.

Toshiba declined to comment on how it would finance the deal, but the Japanese firm will likely have enough cash on hand to cover most of the cost, depending on the size of Landis+Gyr’s debts.

Toshiba said it had yet to determine the impact of the acquisition on its business performance in the year to March 2012.

Media reports had said the Japanese conglomerate might team up with other firms in the buyout, but Toshiba said it had agreed to acquire the whole firm.

The firm boasts more than 8,000 utility customers globally, with 5,000 employees in more than 30 countries. There are no plans for job reductions following the deal.

In January, Landis was chosen to supply 10,000 smart meters to the State Grid Corporation of China as part of the construction of the world’s largest smart grid.

The Toshiba takeover, which is subject to regulatory approval, is expected to close in the third calendar quarter of this year.