Another meter measurement international company merger and acquisition case will impact the domestic market

[China Instrument Network Instrumentation Enterprise] Not long ago news came to the two foreign water meter instrument companies to sell: Badger Meter and Sensus (United States), the two companies' total revenue exceeds 1 billion US dollars.

On August 15 local time in the United States, the world’s leading water company, Xylem, announced that it has reached an agreement on the acquisition of Sensus and will spend about US$1.7 billion in cash to acquire it.

Why buy Sensus instead of Badger Meter?

First look at these two companies:

Badger Meter, Inc. is a manufacturer of production flow measurement and control equipment. Its production technology level is in the leading position in the world. Its products are sold all over the world. It is mainly used for measuring and controlling fluids, and it controls the micro flow. With world-class measurement technology. Founded in 1905, Badger Meter, Inc. has grown to be a leader in the industry. It was listed on the US stock market in 1971 and has been trading ever since.

Sensus is currently owned by The Jordan Company and GS Capital Partners 2000, which provides smart meters, network technology and data analysis services for water, electricity and gas companies. It is one of the world's largest suppliers of water, electricity, and gas metering devices. Sensus's metering devices have a wide range of installations worldwide, and smart technology is a leader in the industry.

Xylem's business mainly includes three parts: unit water solutions, analytical instruments and applied water systems. From the perspective of the business sector, Sensus is undoubtedly more consistent, and according to statistical data, in the fiscal year ending on March 31 this year, Sensus realized revenue of 837 million U.S. dollars, and profit before tax, depreciation, and amortization reached 159 million U.S. dollars.

In contrast, Badger's stock price is already high, and it is difficult for the current valuation to have more room for growth.

Referring to the statement of Patrick Decker, President and CEO of Xylem, in a statement, “After Sensus joins, we will accelerate the supply of system intelligent solutions for water and energy to customers for future growth. Build foundations and create higher shareholder value.” “This will be an important step in our strategy to enhance the technical profile of the Xylem solution portfolio. Xylem's world-class brands and products are paired with Sensus' industry-leading intelligence. Technology, the combination of the two will be able to meet the new needs of consumers, such as improving the efficiency of energy use and water conservation, and improving the life cycle cost of products.”

The impact of frequent international mergers and acquisitions on Chinese companies This time, Xylem's acquisition of Sensus not only enhances its existing water treatment solutions and analytical instruments, but also reflects the data released by Sensus (Sensus in the US The company's revenue accounted for 67% of the total revenue, of which 41% were from Xylem, and the two sides complement each other geographically.

It is worth noting that: Xylem has a certain market in China, and the company attaches great importance to business development in the Chinese market. In an interview last June, Pan Deke said in an interview that in 2014, Leavimo’s global operating income increased by 4%, while the Chinese market’s business grew by more than 20%.

In 2007, Shen Shusi Instrument Systems (Fuzhou) Co., Ltd. was established to introduce the most advanced technologies and products of the water meter industry to China. So far, Shinshus Fuzhou has sold a total of more than 200,000 water meters, and the products have successfully entered more than 200 water divisions represented by first-tier cities such as Kitakami Guangzhou-Shenzhen.

A few days ago, the Ministry of Environmental Protection issued a message that it has completed the construction of the central project reserve bank for the 2016 Water Pollution Prevention and Control Action Plan, involving a total of more than 4,800 specific projects with a total investment of over RMB430 billion. Such a large piece of cake not only allows domestic water companies to covet, but also allows transnational water giants to take heart. It seems that Xerem's acquisition of Sensus is also like to start a wide enclosure in China, such a powerful combination, China's meter companies feel cold?

In the past few years, there have been frequent cases of mergers and acquisitions among international companies in the measurement industry. This seems to be seen by giants as the only way to achieve global strategic growth. Before the acquisition of Langier by Toshiba in 2011, Honeywell acquired Elster in 2015. This strong alliance may be bad news for Chinese companies, and it may be good news. The bad news is that such a strong alliance to enter the Chinese market will definitely have a great impact on the market and will occupy a considerable share; the good news is that such a strong competitive relationship will promote the reform of Chinese enterprises and increase The research and development of the products, the strict control of the quality of the products, the enhancement of the sense of competition and the enhancement of mutual cooperation awareness.

(Original title: 1.7 billion U.S. dollars, or cash, who is so generous with the acquisition of Sensus)

The QUANTUM range of Pneumatic Conveying Systems and Equipment truly offers a complete end-to-end solution for those materials best conveyed via airflows.

Our aim is to utilise our range of pneumatic conveying systems to improve product flows and eliminate plant bottlenecks while economically and efficiently conveying material throughout your facility. Whether it is loading or unloading silos and bags, batching material into a process, or simply moving material from A to B, QUANTUM has the system to do the job.

At QUANTUM, we are acutely aware of geographical problems that face our clients around the world, such as high humidity and condensation. If not taken into account, these factors can render a pneumatic conveying system inoperable.  Where necessary, QUANTUM incorporates de-humidification and air chilling to ensure a robust and trouble free system.

The QUANTUM range of Pneumatic Conveying equipment and systems includes:

• Air-slides

• Vacuum systems

• Dust collection systems

• Dense phase conveyors

• Dilute phase conveyors

• Fume extraction systems

Typical Pneumatic Conveying Applications include:

• Bag house dust   

ʉۢ Lime

• Calcium carbonate

• Limestone

• Carbon black    

• PVC resin

• Activated carbon    

• Soda ash

• Cement

• Sugar

• Fly-ash

• Talc

Pneumatic Conveyor

Pneumatic Conveyor,Dilute Phase Conveyor,Dense Phase Transporter,Dilute Phase Pneumatic Conveyor

Quantum Conveying Systems Yangzhou Co.,Ltd. ,