Initial Public Offering

Energy
Initial Public Offering

Summary

Baird served as a co-manager in this offering.

About

Elster Group SE (“Elster” or the “Company”)(NYSE: ELT), a portfolio company of CVC Capital Partners Ltd., recently completed an initial public offering of 18,630,000 American Depositary Shares (“ADS”) at $13.00 per ADS, generating gross proceeds of $242.2 million. The Company’s market capitalization post-offering is approximately $1.3 billion. Elster intends to use the net proceeds from the offering to repay certain debt instruments.

Elster, headquartered in Essen, Germany, is one of the world’s largest providers of gas, electricity and water meters and related communications, networking and software solutions. The Company had $1,695.1 million in revenue and $264.1 million in adjusted EBITDA in 2009. Elster’s products and solutions are used to accurately and reliably measure gas, electricity and water consumption as well as enable energy efficiency and conservation. The Company believes that it has one of the most extensive installed meter bases in the world, with more than 200 million meters deployed over the course of the last ten years. L.E.K. Consulting estimates that in 2009 Elster had the largest global market share by revenues in the gas meter market, were one of the three largest global providers in the water meter market by revenues and had the third largest share by revenues in the electricity meter market. In addition, the Company’s smart grid solutions extend across the entire value chain and include smart meters, two-way communication networks and information and meter data management software. Elster sells its products and solutions in more than 130 countries for use in a variety of settings. Demand for the Company’s products and solutions is driven by natural replacement cycles, urbanization, increased meter penetration and infrastructure developments, as well as increased regulation requiring the use of smart meters. Elster believes that these trends, along with the movement towards energy conservation and the promotion of cleaner fuels and technologies, will continue to play an important role in its future growth.

For additional information about this transaction, please contact:

Gary Vollen 415-627-3273
Steve Guy 414-765-7247
Michael Wolff +49 0 691 301 4949
Melody McDowell 415-627-3272
Energy
Initial Public Offering
Date
September 2010
Company
Elster Group SE
Transaction
M&A
Sectors
Energy
Target Location
Europe

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