Landis+Gyr Group Ag’s Residential and Commercial Focus Electric Meter Installation.
Landis+Gyr Group Ag
Company: Landis+Gyr Group AG (Land-C)
Business:Landis+Gyr Group is a switzerland-based company primarily engaged in the electrical components and equipment manufacturing business. It specializes in metering solutions for electricity, gas, heat/cold and water for energy measurement solutions for utilities. Landis+Gyr Product Portfolio Consists of Advanced Metering and Intelligent Energy Management Products, Such as Electricity Meters, Heating and Cooling Meters, Grid Management Solutions and Personal EnereGy Management solutions. In addition, the company offers Various Software Services, Managed Services, Cloud Services, Smart Grid Services, Systems Integration, Training, As well as Consulting and Support Services.
Stock market value: roughly 1.49b Swiss Francs (CHF 51.60 per Share)
Activist: Spectrum entrepreneurial ownership
Ownership:5.01%
Average cost:n/a
Activist commentary: Spectrum Entrepreneurial Ownesip (“SEO”) Manages A Concentrated Portfolio of Large Minority Investments, Typical Six to Eight Posions, In LISTED EUROPENES COMPANIES with A Focus Region (Germany, Austria and Switzerland). As a long-term and engaged anchor sharehlder, SEO Strives to Unleash Its Portfolio Companies’ full value potential. The firm targets small and mid-cap companies with multiple catalysts for value creation and prioritizes amicable engine, typical sitting on the board of the board of the companies. The Fund’s Stable Capital Base Stems from Family Offices, Endowments, Pension Funds, and Other long-term institutional investors. SEO was co-founded in 2022 by fabian rauch and Dr. Ilias läber. The two Principals have a combined four decades of board experience in listed companies and each previously worked at Cevian Capital for Roughly A Decade.
What’s Happening
Behind the Scenes
Landis+gyr is a switzerland-based Leading Global Provider of Integrated Energy Management Solutions, Specialized in Advanced Metering Infrastructure and Smart Grida Technologies. Utilities and Energy Providers Utilize Landis’ Portfolio of Smart Metering Tech, Sensors, Software and Services to Modernize and Improve the efficiency. While landis is a very old company, founded in 1896, it was privately owned and investment in by a series of Strategic and Financial Investors for Much of its history. In 2011, Toshiba Acquired a 60% stake in the company for us $ 2.3 billion, but eventually opted to IP the swiss unit Six Years LaterIt began trading on the Six Swiss Exchange on July 21, 2017, at 78 Swiss Francs (CHF) Per Share, Implying a Market Cap of Chf 2.3 Billion.
Today, Landis is trading well below its IPO price, down over 35%. It is also significantly undervalked, Trading Around 7.5-Times Enterprise Value/Ebitda, Compared to its nasdaq-listed Pure-Play Peer Itron (Roughly 15-Times) With 15-TIMES WITH SHE Functionally has a duopoly in the united states, Each Controlling 35% to 40% of the Market. In July 2024, SEO Acquired a 5% Interest in Landis from Kirkbi, BComing the second largest share,Shortly after, landis requisitioned an extraordinary general meeting to the board fabian rauch, co-founder and managing partner of seo, in August 2024.Two Months Later, on Oct. 30, 2024, The Company Announced a strategic review of Its business portfolio which incluses the following key elements: (i) Increasing Focus on Its Americas Business; (ii) reviewing Value Creation Opportunities for Its Europe, Middle East and Africa (EMEA) Business; And (iii) Evaluating a potential change in listing location to the united states. However, Several Things have sent the stock price down insurance then, Including Landis Reducing Its FY24 Revenue Guidance by 8% and the Announcement that It will exit Its Electric Vehicle Charging Business in Emea, Resulting in Expected Impairment Charges of $ 35 Million to 45 Million. Regarding the Reduction of Guidance, Despite Landis Continually Messaging that post-Covid Growth was unstainable due to pent-up demand, the warnings fell on deaf ears. Shares Fell Nearly 22% on Feb. 11, 2025, the date of the announcing.
Focusing on the americas makes a lot of sense. Landis generated $ 1.963 billion of revonue from three geographic segments: Americas (58%), EMEA (34%), and Asia-Pacific (8%). Despite emea contributing a third of revenue, it delivered just 8% of adjusted earnings before interes, taxes, depreciation and amortization, amortization, less ebitda than its significant Unit. Exploring Additional Possibility for Growth in the americas and winding down its emea business through eater a sala or spinofff of this business thing be highly across to shareholder Value. A change in listing location, likely to a us exchange, would also make sense considering that this Swiss company is generating most of its profits in the region. This is a strategy which cevian pushed for at bot CRH and PearsonAnd it has been a popular activist catalyst in europe in recent years.
Landis is a story of a failed equity with somewhat of an insular board. Welcoming fabian rauch was the first strong signal that the board wanted change. Announcing a Value-Creating Plan shortly thereaFter was the second signal. The third happy in November 2024when the company replaced Ceo Werner Lieberher with Peter Mainz. Finally, the fourth signal happy in January 2025 when the company announced that its Chairman andreas Umbach will not stand for re-election and will be replaced By Audrey Zibelman.
Ken square is the founder and president of 13d monitor, an institutional research service on shareholder activism, and the founder and portfolio manager of the 13d activist, a mutual funds in a mutual funds in a mutual funds in a mutual funds of Activist 13D Investments.
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