PLMJ steers SIT’s acquisition of Janz water meters

PLMJ Advogados has counselled SIT on the acquisition of Janz-Contagem e Gestão de Fluídos S.A for €28 million

Founded in 1915 by the Janz family and with legal and production headquarters in Lisbon’s Avenida Infante Dom Henrique (11,000 square meters, 250 employees), the company has developed a wide range of mechanical meters and, in particular, excels in volumetric metrological technology, used not only in its own meters but also in those supplied to the leading sector operators. Sales in 2019 reached €18.6 million, with a CAGR over the last five years of 9%, thanks to gradual international expansion in Europe and South America (Janz has a presence in 25 countries) and the introduction of smart meters. Janz’s 2019 recognised revenue was for €6.7 million in Portugal, where it has a 50% market share. The remaining income comes mainly from other European countries for €7.8 million and in South America for approximately €2.2 million.

In addition to 100% of Janz CGF, the transaction also includes a division engaged in mechanical processing and a stake in the distribution company for Spain and the South American markets of Janz products, which shall be concentrated in a single entity by the closing date scheduled for the end of 2020. The price paid, excluding cash and debt, amounts to approx. €28 million. An earn-out of up to €0.8 million is also stipulated based on achieving specific targets in 2021. The acquisition is expected to conclude in December 2020 and is still subject to some conditions, including the obtaining of all legally-required approvals and authorisations. The transaction will be funded by a new credit line which SIT obtained from the banks involved in the current syndicate.

PLMJ team was led by Corporate and M&A partner Diogo Perestrelo (pictured), and involved Public Law managing associate Raquel Freitas, and Corporate M&A senior associate Nuno Marques and associate Pedro Menezes Cardoso.

SIT was also assisted by SAT – Spinazzi Azzarita Troi Genito Law Firm. Garrigues Portugal advised BJH, the major Janz’ shareholder.