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Itron
Completes Acquisition of Actaris Metering Systems
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Acquisition creates a worldwide market leader with more than 8,000 utility customers, expands Itron’s product offerings and increases access to global markets for electricity, gas and water meters and automated meter reading (AMR) technology.
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Acquisition financed by cash on hand and $1.2 billion senior secured first lien credit facility.
SPOKANE,
WA. — April 18, 2007 — Itron, Inc. (NASDAQ:ITRI) announced today that
it has completed the acquisition of Actaris Metering Systems (Actaris) for
€800 million plus the retirement of debt, or $1.7 billion.
“We
are delighted to announce the completion of the Actaris acquisition,”
said LeRoy Nosbaum, chairman and CEO. “In talking with customers,
investors and employees over the past two months it is apparent that this
is the right acquisition at the right time.”
Actaris
is a leader in electricity, gas and water metering, primarily outside of
North America. Itron is the leading supplier of AMR systems and
electricity meters in North America. The combined company will be
one of the largest electricity, gas and water metering companies in the
world. This acquisition will allow Actaris to offer Itron’s AMR
and advanced metering infrastructure (AMI) technologies, software and
systems expertise to customers outside of North America, and expand
Actaris gas and water meter opportunities in North America. The
combined company will have more than 8,000 utility customers, 33
manufacturing facilities, customers in more than 60 countries and have
more than 8,500 employees.
The acquisition was financed by a $1.2 billion senior secured credit facility from UBS Investment Bank. The facility is comprised of a $605 million first lien U.S. denominated term loan; a €335 million first lien Euro denominated term loan; a £50 million first lien Sterling denominated term loan; and a $115 million multicurrency revolving line-of-credit, which was undrawn at close.
Actaris
will continue to operate fundamentally as it does today. Malcolm
Unsworth, Itron’s former Vice President of Hardware Solutions, has moved
to Brussels to assume the day-to-day operations of the company as
Actaris’ Senior Vice-President and Chief Operating Officer.
Actaris will continue to operate electric, gas and water businesses.
Itron
will report financial results for Actaris as a standalone business with
these three operating segments, in addition to reporting financial results
for Itron’s previously established hardware and software segments with
sales and operations primarily concentrated in North America. Philip
Mezey, Itron’s former Vice President of Software Solutions, will become
Senior Vice President and Chief Operating Officer of Itron’s North
American operations.
Itron
will announce financial results for the first quarter of 2007 on May 2,
2007 and during that call will discuss the Actaris transaction in more
detail.
“We
are excited to complete this transaction so quickly,” said Nosbaum.
“The combination of Itron and Actaris will create opportunities for both
companies, for our customers and for our investors and we are looking
forward to making the most of those opportunities.”
Note:
This acquisition was the subject of a Worldflow Flash Report on June 12,
2007, that provided analysis and background on both Actaris and Itron.
Flash Reports are part of our Worldflow Monitoring Service. For details on
our Worldflow service, including how to receive Flash Reports, go to www.worldflow.com.