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Financial Advisor to R&S Group on the acquisition of Kyte Powertech and on the transaction financing
On 20 August 2024, R&S Group Holding AG (SIX: RSGN) announced a planned acquisition by means of an ad hoc announcement (Art. 53 LR). R&S Group Holding AG (R&S Group), a leading provider of electrical infrastructure components in focus markets in Europe and the Middle East, has entered into an agreement to acquire 100% of Kyte Powertech Limited, an Ireland-based leading manufacturer of distribution transformers. R&S Group agreed to acquire Kyte Powertech from MML Growth Capital Partners Ireland and existing management for an enterprise value of EUR 250 million. The majority of the consideration will be paid in cash secured by a bridge facility of CHF 233 million. Furthermore, a roll-over participation of the management of Kyte Powertech has been agreed, a sign of strong commitment to future performance. The acquisition enhances the R&S Group's product portfolio, gives it access to the Irish, UK and Western European markets and will generate substantial synergies from cross-selling opportunities and operating efficiencies.
IFBC supported the R&S Group as Financial Advisor during the entire transaction process and in particular in establishing the transaction financing. For complex structuring, valuation and negotiation matters, IFBC acted as a sparring partner for the management and the Board of Directors. IFBC also advised the R&S Group on the establishment of the bridge financing and was responsible for project management in the creation of this integrated financing solution. Upon completion of the takeout of the bridge facility and the equity issuance, R&S Group’s immediate net leverage is around 2.25x LTM EBITDA (as of June 2024) and the aim is to reduce this to 2x LTM EBITDA by year-end 2024.
Markus Laesser, CEO of R&S Group: “IFBC's extensive expertise and experience in takeovers, valuations and financing were a valuable support and an important success factor for the successful acquisition.”
R&S Group Holding AG’s (“R&S Group”, the “company”) operating headquarters are located in Sissach/BL, Switzerland. With six manufacturing facilities in Switzerland, Italy, Poland and the Middle East, R&S Group serves its domestic and various European export markets with small and medium power and distribution transformers and other components in the utility, infrastructure and industrial sectors. The company has been successfully positioned to benefit from the accelerating demand for energy production and distribution, driven by the global trend towards decarbonization. R&S Group has been listed on SIX Swiss Exchange since 13 December 2023 under the ticker symbol RSGN following its successful business combination with VT5 Acquisition AG, a previously Swiss-listed Special Purpose Acquisition Company (SPAC).
Kyte Powertech Limited (“Kyte Powertech“) is headquartered in Cavan, Ireland. With a central manufacturing facility in Cavan and further sales and service representations in Belgium, France, the Netherlands and the United Kingdom, Kyte Powertech serves its domestic and various European export markets with utility distribution transformers across the entire mega volt ampere (MVA) spectrum. The company is well positioned to capture market growth, benefitting from long-standing customer relationships, high-quality reputation and a track record of consistent delivery for customers.
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