ZURICH – Landis+Gyr Group AG (LAND-CH), the Swiss-based energy management solutions provider, has become a target for value creation by activist investor Spectrum Entrepreneurial Ownership (SEO). The investment firm acquired a 5.01% stake in July 2024 and has since secured board representation while pushing for operational changes.
Company Overview and Market Position
Founded in 1896, Landis+Gyr specializes in smart metering technology and grid management solutions for utilities worldwide. The company went public on the SIX Swiss Exchange in 2017 at CHF 78 per share but currently trades at CHF 51.60, representing a 35% decline from its IPO price. With a market capitalization of approximately CHF 1.49 billion, the firm trails its Nasdaq-listed peer Itron in valuation multiples.
Activist Investor Profile
Spectrum Entrepreneurial Ownership, co-founded in 2022 by Fabian Rauch and Dr. Ilias Läber, focuses on long-term investments in small-to-mid cap European companies. The firm typically holds 6-8 concentrated positions and seeks board representation to implement value creation strategies.
Recent Developments and Strategic Shifts
Following SEO’s investment, Landis+Gyr has undergone significant changes:
- August 2024: SEO co-founder Fabian Rauch joins board
- October 2024: Company announces strategic review including potential U.S. listing
- November 2024: CEO Werner Lieberherr replaced by Peter Mainz
- January 2025: Chairman Andreas Umbach steps down, replaced by Audrey Zibelman
The company recently reduced FY24 revenue guidance by 8% and announced plans to exit its EMEA electric vehicle charging business, resulting in CHF 35-45 million impairment charges.
Geographic Performance and Restructuring Plans
Landis+Gyr generates 58% of its $1.963 billion revenue from the Americas, which delivers substantially higher margins than its EMEA operations (34% of revenue but only 8% of adjusted EBITDA). The strategic review focuses on:
- Expanding the higher-margin Americas business
- Evaluating strategic options for EMEA operations
- Considering a U.S. stock exchange listing
Market Reaction and Analyst Perspective
Shares fell 22% on February 11, 2025 following guidance reduction, despite previous warnings about unsustainable post-pandemic growth. Analysts suggest the current 7.5x EV/EBITDA multiple significantly undervalues the company compared to peers.
Leadership Changes Signal New Direction
The appointment of new CEO Peter Mainz and chairman Audrey Zibelman, combined with SEO’s board representation, indicates fundamental changes in corporate strategy. Industry observers note parallels with successful European-to-U.S. relocations advocated by activists in recent years.
Ken Squire of 13D Monitor commented: “Landis+Gyr represents a classic case of an undervalued European company with substantial U.S. operations that could benefit from increased investor recognition through a stateside listing.”
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