R&S Group to acquire Kyte Powertech
The provider of electrical infrastructure components will acquire 100% of the Ireland-based manufacturer of distribution transformers.
Image for illustration purposes.
Switzerland, Sissach: R&S Group Holding AG, a provider of electrical infrastructure components focused on Europe and the Middle East, is set to acquire 100% of Kyte Powertech Limited, an Ireland-based manufacturer of distribution transformers. The Group will acquire the manufacturer from MML Growth Capital Partners Ireland and existing management for an enterprise value of €250 million ($277 million) on 20 August, with the majority of the consideration being paid in cash secured by a bridge facility and a participation roll-over by management.
“M&A is a strategic pillar of the R&S Group roadmap. Combining with a leader in additional markets which R&S Group is currently not serving, will strengthen the combined group and management capabilities. We are gaining in our product offering and technical expertise,” Markus Laesser, CEO of R&S Group commented.
Kyte Powertech was founded in 1977 and is headquartered in Cavan, Ireland, currently employing about 490 people. It manufactures distribution transformer solutions, and its main markets are Ireland, the UK, the Netherlands, Belgium and France.
R&S Group said it would stay fully committed to the Cavan facility and its workforce and intends to invest in capacities and its technology center. Kyte Powertech’s management team aims to stay on board, having invested with a participation of around 6% in R&S Group shares to ensure continuity within the business.
Stephanie Leonard, CEO Kyte Powertech commented: “Over the past years we have achieved the evolution of Kyte Powertech into a European champion in the transformer industry. We are excited to join forces with R&S Group, continue our growth trajectory together and further strengthen the deep customer relationships and recognition of our brand”.
According to R&S Group, Kyte Powertech will give it access to an attractive product portfolio in distribution transformers and add production capacity through a central manufacturing site, helping capture strong demand potential. It will also broaden the sales network into Ireland, the UK, the Netherlands, Belgium, and France.
Source: R&S Group
