Basel-based transformer manufacturer R&S acquires Irish company for CHF 264 million
Published: Tuesday, Aug 20th 2024, 10:00
Updated At: Wednesday, Aug 21st 2024, 01:58
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The Basel-based transformer manufacturer R&S is acquiring the Irish manufacturer of distribution transformer solutions Kyte Powertech from MML Growth Capital Partners. With the acquisition, the company is expanding its product range and market presence in Ireland, the UK and Western Europe.
The €264 million transaction is expected to be completed later today, R&S announced on Tuesday. The funds for the acquisition will come from bridge financing and a transfer of shares in the Group to the management of Kyte Powertech.
Kyte Powertech was founded in 1977 and is headquartered in Cavan, Ireland. The company employs around 490 people and mainly serves the markets of Ireland, the United Kingdom, the Netherlands, Belgium and France. The management expects a turnover of 165 million euros and an EBIT of 33 million euros for the full year 2024.
Management remains on board
With the purchase, R&S is also taking over Kyte Powertech's production facility in Ireland and the workforce, according to the statement. The management team has also committed to staying on board and has taken a stake of around 5 percent in R&S.
According to the press release, the Basel-based transformer manufacturer will achieve pro forma net sales of 384 million Swiss francs and an operating profit at EBIT level of 78 million Swiss francs as a result of the takeover. By comparison, R&S generated sales of 216.7 million Swiss francs and an operating profit of 37.5 million in 2023.
R&S was listed on the Swiss stock exchange last December through a Spac company - a listed shell company set up to acquire unlisted companies. With a gain of 13 percent in early trading on Tuesday, R&S shares have risen by more than 45 percent since the beginning of the year, clearly outperforming the market as a whole.
The Group has six production sites in Switzerland, Italy, Poland and the Middle East and says it is benefiting from rising energy demand and the trend towards decarbonization.
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