![\"\"](\"https:\/\/www.nkt.com\/imgproxy\/SoQYgZE-ahBR3S-ibWJEQM72rxfRDgh8yekUto_oXZw\/rt:fill\/w:1600\/h:600\/g:fp:0.44333333:0.61333334\/ex:1\/el:1\/aHR0cHM6Ly9ua3Qud2lkZW4ubmV0L2NvbnRlbnQvenBwY2F4b3l3bi9wbmcvU29saWRhbCUyMGZyb250JTIwMy5wbmc_bGFzdE1vZGlmaWVkPUZyaStKdW4rMjErMDklM0E1MSUzQTM0K0NFU1QrMjAyNA.jpeg\")
<\/strong><\/h4>\nNKT has acquired SolidAl, a Portugal-based power cable company, from Njord Partners, adding medium- and high-voltage capacity to meet the growing demand from grid upgrades and renewable energy projects across Europe. <\/strong><\/h1>\n <\/p>\n As part of the acquisition, NKT will invest in additional capacity at the existing site.<\/strong><\/p>\n <\/p>\n As the electrification of society continues to gain momentum, power generation and consumption is increasing. Upgrading Europe\u2019s aging power grid infrastructure and connecting a growing number of renewable power projects is driving demand for medium- and high-voltage power cables. According to the International Energy Agency (IEA), reaching national climate goals requires adding or refurbishing a total of more than 80 million kilometres of power grids by 2040, the equivalent of the entire existing global grid and the European Union estimates that Europe will need to invest EUR 584bn to upgrade its power grids this decade. <\/p>\n To satisfy this growing demand from power grid customers, NKT has acquired SolidAl. The acquisition is supporting NKT\u2019s growth strategy and will:<\/p>\n \u201cSolidAl provides a strong strategic fit in terms of capacity and competence, strengthening NKT\u2019s position in serving customers with end-to-end grid solutions, particularly the growing demand for medium- and high-voltage power cables up to 225 kV. We look forward to welcoming SolidAl\u2019s highly skilled employees to NKT and continuing our growth journey together. With more than 50 years in the industry, SolidAl will complement the competitiveness of the product mix from NKT\u2019s existing factories in Asnaes, Velke Mezirici and Cologne focusing on delivering the full range of power cables for the grid at a larger scale,\u201d says Claes Westerlind, President and CEO of NKT.<\/p>\n<\/blockquote>\n <\/p>\n \u201cNKT\u2019s acquisition of SolidAl is a testament to our team\u2019s dedication and hard work. NKT is a widely recognized worldwide leader in the manufacturing of power cables and accessories, and I could not think of a better owner to support SolidAl in expanding its commercial reach and technical capabilities,\u201d says Fran\u00e7ois Moufflet, CEO, SolidAl.<\/p>\n<\/blockquote>\n <\/p>\n Adding an established production footprint in Southern Europe will enhance NKT\u2019s geographical footprint and reach in selected key markets. SolidAl\u2019s strong presence in France, UK, Ireland, Spain, and Portugal expands NKT into new markets and strengthens its existing foothold in others.<\/p>\n In 2023, SolidAl had revenue (in market prices) of approximately EUR 150m and generated an EBITDA of approximately EUR 20m. NKT has acquired SolidAl for a total enterprise value of EUR 192m, corresponding to an EV\/EBITDA multiple of 9.4x. NKT has identified recurring synergies which will gradually contribute to an improved financial performance starting in 2025 and are expected to be fully realized by end 2026. Including synergies, the acquisition of SolidAl corresponds to an EV\/EBITDA multiple of 7.0x.<\/p>\n As part of the acquisition, NKT will invest an additional EUR 50m to expand the medium- and high-voltage capacity at the existing site. The new production capacity is anticipated to be operational in 2027. The acquisition, including the investment, is expected to support NKT\u2019s medium-term financial ambitions including delivering RoCE above 20%.<\/p>\n The transaction is unconditional, and closing is effective as of today. The acquisition was funded within the existing capital structure. NKT remains committed to a conservative capital structure with leverage ratio <0.0x catering for the investment programs ongoing and enabling the high-voltage projects.<\/p>\n SolidAl is expected to contribute to NKT\u2019s financial performance from the date of closing. The contribution is expected to be in line with 2023 and will come in addition to NKT\u2019s 2024 financial outlook announced in company announcement no. 3 of 21 February 2024, which remains unchanged.<\/p>\n <\/p>\n Transaction overview<\/strong><\/p>\n <\/p>\n Key facts about SolidAl<\/strong><\/p>\n <\/p>\n Teleconference<\/strong> NKT A\/S hosts a teleconference for investors and financial analysts at 12:00 pm CEST on 21 June 2024. The presentation to be used during the call will be available before the start of the teleconference. To attend, please register and access on investors.nkt.com<\/p>\n <\/p>\n [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_empty_space][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text el_class=’bg_wt_rc’]<\/p>\n More information on NKT:<\/strong> See the full profile on EMR Executive Services<\/a><\/p>\n More information on Claes Westerlind (President and Chief Executive Officer, NKT): <\/strong>See the full profile on EMR Executive Services<\/a><\/p>\n More information on Line Andrea Fandrup (Executive Vice President, Chief Financial Officer, NKT): <\/strong>See the full profile on EMR Executive Services<\/a><\/p>\n <\/p>\n More information on SolidAl by NKT:<\/strong> https:\/\/www.solidal.pt\/<\/a> + Solidal is a leading manufacturer of power cables, conductors and integrated solutions for energy transmission and distribution from 1 kV up to 400 kV.<\/p>\n Our clients are international utilities, wholesalers and contractors who rely on us for a wide product range and integrated technical solutions<\/p>\n The company has over 50 years of experience delivering power cables (including High Voltage, Medium Voltage, Low Voltage, ACSR and Aluminium Conductors) for projects across over 40 countries.<\/p>\n Quintas & Quintas group was founded in 1925. Solidal was founded in 1970 and integrated Quintas & Quintas group in 1987.<\/p>\n In January 2019, Njord Partners LLP (with its affiliated entities and managed funds \u201cNjord\u201d) acquired a majority (87,5%) shareholding in Solidal \u2013 Condutores El\u00e9ctricos, S.A. The Quintas family maintains a participation of 12,5%.<\/p>\n More information on Fran\u00e7ois Moufflet (Group Chief Executive Officer, SolidAl, NKT): <\/strong>See the full profile on EMR Executive Services<\/a><\/p>\n <\/p>\n More information on Njord Partners:<\/strong> https:\/\/njordpartners.com\/<\/a> + Njord Partners is a special situations investment manager and provider of long-term flexible capital solutions. Established in 2013, Njord Partners manages capital in excess of \u20ac1 billion. Investing in European middle-market companies facing complex situations, its mission is to deliver superior risk-weighted returns to investors while preserving capital. As a capital partner, Njord Partners offers flexible debt and equity solutions, actively facilitating strategic and operational enhancements within its portfolio companies to drive value.<\/p>\n More information on Arvid Trolle (Co-founder and Partner, Njord Partners): <\/strong>https:\/\/njordpartners.com\/njord-partners-sells-solidal-to-nkt\/<\/a> + https:\/\/www.linkedin.com\/in\/arvid-trolle\/<\/a> <\/p>\n <\/p>\n More information on IEA (International Energy Agency):<\/strong> https:\/\/www.iea.org<\/a> + The IEA is at the heart of global dialogue on energy, providing authoritative analysis, data, policy recommendations, and real-world solutions to help countries provide secure and sustainable energy for all.<\/p>\n The IEA was created in 1974 to help co-ordinate a collective response to major disruptions in the supply of oil. While oil security this remains a key aspect of our work, the IEA has evolved and expanded significantly since its foundation.<\/p>\n Taking an all-fuels, all-technology approach, the IEA recommends policies that enhance the reliability, affordability and sustainability of energy. It examines the full spectrum issues including renewables, oil, gas and coal supply and demand, energy efficiency, clean energy technologies, electricity systems and markets, access to energy, demand-side management, and much more.<\/p>\n Since 2015, the IEA has opened its doors to major emerging countries to expand its global impact, and deepen cooperation in energy security, data and statistics, energy policy analysis, energy efficiency, and the growing use of clean energy technologies. <\/p>\n More information on Dr. Fatih Birol (Executive Director, International Energy Agency):<\/strong> https:\/\/www.iea.org\/contributors\/dr-fatih-birol<\/a> + https:\/\/www.linkedin.com\/in\/fatih-birol\/<\/a> <\/p>\n <\/p>\n More information on The European Union:<\/strong> https:\/\/european-union.europa.eu\/index_en<\/a> + The European Union\u2019s institutional set-up is unique and its decision-making system is constantly evolving. The 7 European institutions, 7 EU bodies and over 30 decentralised agencies are spread across the EU. They work together to address the common interests of the EU and European people. <\/p>\n In terms of administration, there are a further 20 EU agencies and organisations which carry out specific legal functions and 4 interinstitutional services which support the institutions.<\/p>\n All of these establishments have specific roles \u2013 from developing EU laws and policy-making to implementing policies and working on specialist areas, such as health, medicine, transport and the environment.<\/p>\n There are 4 main decision-making institutions which lead the EU\u2019s administration. These institutions collectively provide the EU with policy direction and play different roles in the law-making process: <\/p>\n Their work is complemented by other institutions and bodies, which include:<\/p>\n The EU institutions and bodies cooperate extensively with the network of EU agencies and organisations across the European Union. The primary function of these bodies and agencies is to translate policies into realities on the ground.<\/p>\n Around 60,000 EU civil servants and other staff serve the 450 million Europeans (and countless others around the world).<\/p>\n Currently, 27 countries are part of the EU: https:\/\/european-union.europa.eu\/principles-countries-history\/country-profiles_en<\/a> <\/p>\n More information on The European Commission:<\/strong> https:\/\/ec.europa.eu\/info\/index_en<\/a> + The Commission helps to shape the EU’s overall strategy, proposes new EU laws and policies, monitors their implementation and manages the EU budget. It also plays a significant role in supporting international development and delivering aid.<\/p>\n The Commission is steered by a group of 27 Commissioners, known as ‘the college’. Together they take decisions on the Commission’s political and strategic direction.<\/p>\n A new college of Commissioners is appointed every 5 years.<\/p>\n The Commission is organised into policy departments, known as Directorates-General (DGs), which are responsible for different policy areas. DGs develop, implement and manage EU policy, law, and funding programmes. In addition, service departments deal with particular administrative issues. Executive agencies manage programmes set up by the Commission.<\/p>\n Principal roles in law: The Commission proposes and implements laws which are in keeping with the objectives of the EU treaties. It encourages input from business and citizens in the law-making process and ensures laws are correctly implemented, evaluated and updated when needed.<\/p>\n More information on Ursula von der Leyen (President, The European Commission):<\/strong> https:\/\/ec.europa.eu\/commission\/commissioners\/2019-2024\/president_en<\/a> + https:\/\/www.linkedin.com\/in\/ursula-von-der-leyen\/<\/a> <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n EMR Additional Notes:<\/strong><\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n<\/div>\n<\/div>\n [\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":" [vc_row el_class=’EmrExectiveRowSection’][vc_column][vc_column_text] NKT has acquired SolidAl, a Portugal-based power cable company, from Njord Partners, adding medium- and high-voltage capacity to meet the growing demand from grid upgrades […]<\/p>\n","protected":false},"author":10,"featured_media":8886,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[71],"tags":[],"acf":{"select_date":"20240621"},"aioseo_notices":[],"yoast_head":"\n\n
\n
\n
\n
\n
\n
\n
Source<\/span>NKT<\/span>[vc_icon class=’fntasm’ icon_fontawesome=’fas fa-external-link-alt’]<\/a><\/h5>\n
EMR Analysis<\/strong><\/h4>\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n