Electronic Equipment and Instruments | Raleigh, NC | Corporate Acquisition
Water technology company Xylem (NYSE: XYL) has agreed to buy Sensus USA for about $1.7 billion in cash. Sensus provides advanced metering technologies for water, electric and gas utilities, as well as network technologies and advanced data analytics. It has more than 80 million metering devices installed in the US, UK, Germany, Slovakia and China. Xylem expects to achieve at least $50 million in annual cost synergies within three years of closing. The acquisition could represent just the start of increased M&A activity for Xylem, according to Reuters, as the company has told investors it plans to spend up to $3.5 billion picking up other companies over the coming five years.
As part of the deal, Goldman Sachs will retain a 34% stake in Sensus, with The Jordan Company retaining ownership of the remainder. The firms acquired Sensus for $650 million in 2003, making it one of the longest held investments in the history of private equity.