USA, Durham, NC
IHS has made its fifth acquisition this year, Chemical Market Associates (CMAI), a provider of market & business advisory services for the worldwide petrochemical, specialty chemicals, fertilizer, plastics, fibers and chlor-alkali industries.
“CMAI is a natural complement to our ever-expanding capabilities in the chemical industry’s information, analysis and consulting market,” said IHS Chairman and Chief Executive Officer Jerre Stead. “The company’s comprehensive information and analysis adds to our event-driven supply-chain information strategy and the company’s price discovery and analysis business will broaden IHS commodities and cost information capabilities. CMAI’s unique and proprietary chemical information can be used throughout IHS to deliver additional high-value analytical services to our global customers.”
CMAI clients include chemical companies, oil and gas companies, technology and engineering companies, financial institutions, plastic converters, industrial and consumer manufacturers, retailers, government agencies, trading companies, financials and shipping companies. The company is headquartered in Houston, with offices in Bangkok, Dubai, Dusseldorf, London, New York, Shanghai and Singapore.
The IHS acquisition of CMAI follows a string of strategic transactions that bolster the company’s broad base of capabilities in energy and power, environmental health and safety (EHS) and sustainability, petrochemicals and automotive industry forecasting.
During the first four months of 2011, IHS also acquired:
ODS-Petrodata – A premier provider of data, information and market intelligence to the offshore energy industry.
Dyadem International – The market leader in Operational Risk Management and Quality Risk Management solutions.
EIATrack – A subscription-based, online tool for quickly and cost-effectively navigating and managing global environmental regulations and legislation, EIATrack tracks more than 6,000 pieces of legislation from proposal to implementation, analyzing environmental regulatory activity in North America, Europe, South America and Asia Pacific. The acquisition represents continued investment in the electronics supply chain, for which IHS has already established a strategic position through the company’s REACH and Compliance Suite offerings, as well as the recent iSuppli acquisition.
CSM South America – CSM South America compiles and maintains automotive forecast information for all South American countries. The company also sells IHS Automotive products and manages the resulting customer relationships in the region. The acquisition will give IHS more direct access to this critical, rapidly growing market, while providing a platform to enhance the company’s automotive forecasting business with localized insight.
“With these five transactions completed so far in 2011, IHS has completed more than 30 strategic acquisitions since 2007, deploying more than $1.3 billion in capital,” added Stead. “Each of these acquisitions affords our company the opportunity to expand the information and insight offerings we provide to our customers to help them make critical business decisions every day.”
As a result of the company’s 2011 acquisition activity, IHS is updating its full-year 2011 revenue and adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) guidance. For the year ending November 30, 2011, IHS expects:
Investment Technology Group (ITG), an agency research broker and financial technology firm, has acquired Ross Smith Energy Group (RESG) a Calgary-based independent provider of research on the oil and gas industry for $38.5 million in cash.
RSEG, a privately held firm, was founded in Calgary, Alberta in 1998. RSEG revenues for the trailing twelve months ending in April 2011 were approximately US$15 million. Adjusted pre-tax margins, excluding non-operating expenses that will not continue beyond the acquisition, were approximately 25% for the trailing twelve months. Going forward, RSEG will be rebranded as ITG Investment Research and the research offering will be an integrated part of the ITG platform.
RSEG provides detailed technical and financial analysis of North American resource plays, public and private corporations, as well as coverage of international and macroeconomic energy issues, for more than 200 clients in North America and Europe, including more than 60 equity fund managers who are new clients for ITG. RSEG’s team of approximately 40 staff includes professional engineers, technologists and financial analysts. With the addition of RSEG, ITG Investment Research will provide differentiated views into the exploration and production activities of North American and international energy companies.
“This acquisition marks a significant expansion for the ITG Investment Research platform,” said Bob Gasser, CEO and President of ITG. “With the addition of energy sector coverage, ITG is even better positioned to offer alpha-generating insights to our clients and to work towards our goal of being a leading partner in both research and execution on a global scale.”
Jim Jarrell, President of Ross Smith Energy Group, said, “ITG’s focus on providing differentiated research and building relationships within the institutional investment community make it a natural fit for us. We share a vision. My colleagues and I are excited about bringing the ITG platform to our existing clients and our collective expertise and service to a broader set of investors.”
USA, New York, NY & Canada, Calgary, Alberta
Headquartered in Madison, Wisconsin, RMT’s Environmental Business Unit specializes in consulting, development, engineering and construction through remediation and restoration; environmental, health and safety management; air pollution control; and solid waste management offerings. The Environmental Business Unit, which consists of approximately 200 consultants and 10 primary locations, has projected net service revenue for 2011 of approximately $27 million.
“The acquisition of RMT’s Environmental Business Unit aligns perfectly with TRC’s growth strategy,” said TRC Chairman and Chief Executive Officer Chris Vincze. “Through this transaction, we add depth and capability to our service portfolio and significantly expand our presence throughout the Midwest, while strengthening our position in Texas. Also, RMT’s Environmental Business Unit provides us access to a deep and attractive roster of industrial clients, which allows substantial cross-selling opportunities.”
“For more than 30 years, RMT has been a recognized leader in environmental services. Beyond the geographic match, this acquisition represents a natural cultural fit for TRC, as RMT’s approach to client service and commitment to quality closely mirrors our own. The acquisition brings to TRC a talented group of industry professionals, and we welcome them to the TRC team. We look forward to a rapid integration, which we expect to be fully completed in the first quarter of fiscal 2012.”
RMT President Steve Johannsen said, “When we made the strategic decision to divest our Environmental Business Unit, we aimed to find a respected peer that would maintain our corporate heritage — strong customer relationships, a commitment to the environment and an employee-centric organization. As a result, we believe TRC is the ideal match. In an industry where expertise and reputation for quality are critical, TRC is a firm with a long and distinguished track record. We expect that this transition will be seamless and beneficial for both our customers and employees.”
USA, Lowell, MA & Madison, WI
Schneider Electric will make a cash tender offer for all of Telvent’s shares at a price of $40 per share, which represents a premium of 36% to Telvent’s average share price over the last 3 months and values the transaction at approximately $2 billion. Abengoa SA has irrevocably agreed to tender its 40% shareholding in Telvent into the offer. Certain members of management of Abengoa SA and Telvent, who collectively hold approximately 1.5% of Telvent’s capital, have also agreed to tender their shares. The transaction is expected to close in the third quarter of 2011.
In March this year, Schneider acquired Kentucky based energy procurement and sustainability services business Summit Energy Services. In December 2010, Schneider acquired two French-based software technologies for building management companies: Vizelia, a software provider of real time energy monitoring of buildings, and D5X, a specialist in solutions to optimize commercial space utilization.
Based in Madrid and listed on NASDAQ, Telvent (symbol: TLVT) is a leading and highly-recognized software and IT solution provider of real-time management of smart infrastructures. It provides its customers with increased reliability and flexibility of power distribution networks as well as operational and energy efficiency of their infrastructures.
Jean-Pascal Tricoire, Schneider Electric’s President and CEO, commented: “The acquisition is in line with our ambition to become a complete solution provider for our customers. Telvent offers software capability that complements and integrates with Schneider Electric’s offering. It also brings complementary customer base and geographical coverage. Together, we will be able to provide our customers with high value added solutions that integrate smart devices and full software capability, hence reinforcing our position in the smart grid and critical infrastructure space. We look forward to welcoming the Telvent teams who will enrich the cultural diversity and capability of our company. ”
Telvent employs more than 6,000 people on a worldwide basis and operates in more than 19 countries. It reported 2010 sales of approximately €753 million and adjusted EBITDA of €115 million. Its key markets are in Europe (42% of 2010 sales), North America (35%) and Latin America (16%). Its presence in the other regions of the world is more limited (7% of 2010 sales) but growing. Its five operating segments are: Energy (34% of sales), Transportation (28%), Environment (8%), Global Services (19%) and Agriculture (11%).
Schneider Electric expects the transaction to generate revenue synergies of €250-300 million by 2016 thanks to enlarged offerings, complementary customer bases and geographical exposure. The estimated impact on EBITA is of approximately €30-35 million by 2016. The Group also aims to achieve cost efficiencies which could improve EBITA by up to €20-25 million by 2016.
In total, the full potential impact of revenue and cost synergies on EBITA is estimated to reach € 50-60 million by 2016, of which two thirds should be achieved by 2014.
France, Rueil-Malmaison & Spain, Madrid
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French private equity firm PAI Partners are to sell SPIE.
SPIE provides electrical and mechanical engineering and HVAC services, energy and communication systems, The company helps local and regional authorities and companies design, build, operate and maintain energy-efficient facilities.
PAI have granted an exclusivity agreement to a consortium led by Clayton, Dubilier & Rice together with AXA Private Equity and Caisse de dépôt et placement du Québec, for a total consideration of EUR 2.1 billion
In compliance with French law, SPIE management will now begin a consultation process with its works councils.
Olivier de Vregille, a PAI partner, commented: “Five years after PAI partners acquired SPIE, the company has grown dramatically – it has acquired more than 50 companies across Europe and its workforce has increased from 23,000 to almost 29,000 -; its operational profit has doubled. PAI partners selected the best acquisition proposal thereby ensuring that the interests and values of the company and its employees were at the heart of its new project.”
SPIE has 28,600 employees working from around 400 locations in 31 countries, in 2010 SPIE generated operating profit on ordinary activities of EUR192.3 million on turnover of EUR3.75 billion.
France, Paris
Hara, a leading provider of environmental and energy management software, has received $25 million in Series C funding, the company’s largest round, bringing total investment to $45 million. Participants include Energy Technology Ventures, a joint venture of GE (NYSE: GE), NRG Energy (NYSE: NRG) and ConocoPhillips (NYSE: COP), and ITOCHU Technology Ventures (ITV), as well as existing investors Kleiner Perkins Caufield & Byers (KPCB), JAFCO Ventures and Nth Power and new backers Focus Ventures and Navitas Capital. The funding will allow Hara to accelerate global expansion and product innovation, to meet growing demand from Fortune 1000 companies and government agencies for solutions to help optimize energy and resource use while minimizing environmental impact.
Hara is adding new strategic investors as it advances its growth plans across industries including manufacturing, utilities and oil and gas. These investors include – through Energy Technology Ventures –world-renowned advanced technology, services and finance company GE; ConocoPhillips, the third-largest integrated energy company in the U.S.; NRG Energy, owner and operator of one of the largest power generation portfolios in the nation; and ITV, the venture capital arm of leading Japanese trading group ITOCHU which has also entered into a strategic partnership with Hara to serve clients in Japan. The funding supports Hara’s global focus as an industry leader and is a testament to the adoption, comprehensiveness and scalability of the Hara Environmental and Energy Management (Hara EEM) solution.
USA, San Mateo, CA
Charterhouse Capital Partners is to acquire a majority stake in environmental consultancy Environmental Resources Management (ERM) as part of a management buy-out from Bridgepoint. Under the transaction, which values ERM at US$950m, Charterhouse will acquire a stake of approximately 65 per cent. The remainder of the shares will be held by ERM Partners whose approval is required for this transaction.
John Alexander, Group Chief Executive of ERM said: “We are pleased that Charterhouse shares our vision for the future growth of this company as we enter an exciting new stage of our development. ERM has completed an outstanding year, with Net Revenues up 12 per cent year on year to $483 million and EBITDA up 18 per cent to $76 million year on year. With the strong commitment both from our Partners, whom I believe to be the best in the field, and Charterhouse as a financial partner, we look forward to building on that performance and expanding our business in a market with very strong growth fundamentals.”
Stuart Simpson, a Founding and Senior Partner of Charterhouse said: ‘We have followed the progress of ERM with interest for a number of years. The company has grown to a size and leading market position that makes this the ideal time for Charterhouse to make an investment in the significant growth potential of this world-class business. We are excited to be working with John Alexander and the ERM team during this new phase of global expansion of ERM.
Chris Busby, Partner at Bridgepoint, added: “ERM is a first class business that has capitalised on the market driven opportunity arising from increased regulation, compliance and demand for natural resources and sustainability. It is strongly positioned for a great future.”
The transaction will see the 440 Partners in ERM (including the senior management team) make a substantial reinvestment in the business. The company’s structure, which has combined private equity backing with Partner ownership since 2001, means that the 440 ERM Partners both drive and share in the company’s success.
UK, London
Toshiba Corporation is to acquire Swiss smart meter company Landis+Gyr for US$2.3 billion in cash.
With over 8,000 utility customers globally, Landis+Gyr has been a pioneer in creating smart metering, networking and service products to meet the needs of the utility industry for more than 100 years. Toshiba is acquiring this capability and know-how, and intends to build the business as a stand-alone platform.
“We welcome Landis+Gyr, the world leader in smart metering products and services, to the Toshiba family,” said Hideo Kitamura, Toshiba’s Corporate Executive Vice President. “Our intent is to become a global leader in the Smart Community business by 2020. Together with Landis+Gyr, we will accelerate the development of our combined product and service portfolio to empower utilities and their end customers and to provide sophisticated Smart Community solutions in the global market.”
There are no plans for job reduction or restructuring as a result of this transaction. As of today, Andreas Umbach has assumed the title of Landis+Gyr’s Chief Executive Officer and Cameron O’Reilly will become the Executive Deputy Chairman until the closing of the transaction.
“Over the past 10 years we have built the world leader in smart metering,” said Landis+Gyr CEO Andreas Umbach. “As a growth platform for Toshiba, Landis+Gyr will have the resources and power to complement, and indeed accelerate, our product offering to utilities. With this transaction, Toshiba will now share our vision of helping the world manage energy better.”
Credit Suisse and Lazard led the sale process of Landis+Gyr to Toshiba. Deutsche Bank and Goldman Sachs co-advised Landis+Gyr shareholders on various liquidity alternatives.
Switzerland, Zug
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Amerex Energy Services, the energy brokerage and consulting division of Amerex Brokers, has acquired the operations of Energy Choice Solutions, an independent energy broker & consultant. Steve Willett, former owner of Energy Choice Solutions, will continue to manage the business.
Amerex Energy Services will continue to operate and provide client services from its offices in Texas, as well as a new Philadelphia office. The new regional office will concentrate on Amerex’s existing and potential clients in the Northeast and Midwest regions of the U.S.
“We are pleased to welcome Energy Choice Solutions to Amerex. This acquisition furthers our commitment to remain the premier provider of energy consulting services in North America. We look forward to expanding our business and being better suited to assist clients in the Northeast and Midwest,” said Amerex President Clay Davis.
USA, Houston, TX & Philadelphia, PA
Fusion Corporate Partners 
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