Swiss Electrical Giant R&S Group Acquires Irish Transformer Manufacturer Kyte Powertech for €250 Million
R&S Group, a Zurich-listed electrical distribution transformer manufacturer, has agreed to acquire Kyte Powertech, a Cavan-based company that makes electrical pole-mounted and ground-mounted units transformers as well substations and other electrical components. The deal, valued at an estimated €250 million, marks a significant acquisition in the Irish market this year and is expected to strengthen R&S Group’s product portfolio and expand its market reach in Ireland, the UK and Western Europe.
The Acquisition
The acquisition of Kyte Powertech by R&S Group represents a strategic move for the Swiss company, allowing it to enter new markets and expand its product offerings. Kyte Powertech is a leading manufacturer of distribution transformers in Ireland and the UK with a strong presence in Belgium and the Netherlands. The company boasts a client base that includes ESB, National Grid Group in the UK and SP (ScottishPower) Energy Networks, generating €165 million in turnover this year. The acquisition will provide R&S Group with access to Kyte Powertech’s extensive customer base and its manufacturing capabilities, while offering Kyte Powertech the opportunity to further its growth trajectory and expand its operations across Europe.
Financial Details
The transaction will see MML Capital Ireland exit its roughly 60 per cent stake in Kyte Powertech, acquired in 2020 after backing a management buyout of the company. The remaining 40 per cent of shares are held by the management, led by chief executive Stephanie Leonard, who will remain in situ at the helm of the company after the takeover and will reinvest in the company after the transaction is concluded. The majority of the consideration for the acquisition will be paid in cash secured by a bridge facility, while the management team will roll over a portion of their shares into R&S Group shares.
Key Players
The acquisition of Kyte Powertech represents a strategic move for both R&S Group and Kyte Powertech. For R&S Group, the deal allows it to expand its product offerings and enter new markets, particularly in Ireland, the UK, and Western Europe. The acquisition of Kyte Powertech also provides R&S Group with access to a new customer base and manufacturing capabilities. For Kyte Powertech, the deal offers the opportunity to further its growth trajectory and expand its operations across Europe.
R&S Group Perspective
Markus Laesser, chief executive of R & S group, stated that the deal will give the group exposure to markets it is not currently serving, emphasizing the strategic importance of the acquisition for the company’s growth strategy. He highlighted the benefits of combining R&S Group’s expertise and capabilities with Kyte Powertech’s market position and product offerings, stating that the combined group will be stronger and more capable.
Kyte Powertech Perspective
Stephanie Leonard, CEO of Kyte Powertech, expressed her excitement about the acquisition, stating that it will allow the company to build on its momentum and invest in market opportunities in Europe and beyond. She emphasized the company’s commitment to its workforce and plans to invest in its Cavan facility and technology center.
Impact and Future Plans
The acquisition is expected to have a significant impact on the Irish market, particularly in the electrical infrastructure sector. R&S Group has stated its commitment to investing in Kyte Powertech’s Cavan facility and its workforce, ensuring continued employment and investment in the local community. The acquisition will also strengthen R&S Group’s market position in the UK and Western Europe, with Kyte Powertech’s established customer base and manufacturing capabilities providing a valuable asset for the combined group.
The future plans for Kyte Powertech under R&S Group include investment in its Cavan facility, expansion of its product offerings and growth of its operations across Europe.
A New Era for Kyte Powertech
The acquisition of Kyte Powertech by R&S Group marks a new era for the Irish company. With R&S Group’s investment and expertise, Kyte Powertech is poised to continue its growth trajectory and become a leading player in the European electrical infrastructure sector. This deal is expected to strengthen the combined group’s market position, expand its product offerings and provide exciting new opportunities for both companies.
