Jordan, GS buy Invensys unit for £388m

Invensys, the UK-based engineering company, has completed the sale of its metering business to US private equity firms The Jordan Company and GS Capital Partners for $650m (£388m).

The Jordan Company and GS Capital Partners have completed the £388m purchase of London-based Invensys’ metering business.

The North Carolina-based business, which will be renamed Sensus Metering Systems, is a world leader in advanced metering and communications solutions for the utility industry. The company has two linked businesses, Smith-Blair, which produces pipe joining and pipe repair products for the water and gas utility markets, and Sensus Precision Die Casting, which produces precision aluminium die castings.

The whole business, which has 13 manufacturing sites in eight countries, posted sales of approximately $510m in the fiscal year to March 31 2003. 

The equity for the deal has come from The Resolute Fund, a private equity fund managed by The Jordan Company, and GS Capital Partners 2000 LP, a private equity fund managed by Goldman Sachs & Co. Senior and subordinated debt have been arranged by Credit Suisse First Boston and Goldman Sachs & Co.

“We have met our first target of completing the purchase of the business by the end of the year,” said Jordan Company managing director Jonathan Boucher in a statement. “We have great confidence in the entire Sensus management team and all of their operations.” Jordan Company said it would seek to grow Sensus internally and through strategic acquisitions.

The Jordan Company is a New York-based investment firm with around $2.5bn under management, which has been investing in mid-market leveraged buyouts for over 20 years and has a current portfolio of more than 20 businesses.

GS Capital Partners’ 2000 LP is a $5.25bn private equity fund and is the primary investment vehicle of Goldman Sachs & Co for investments in equity and equity-related securities in privately negotiated deals.