In July 2011 Advent International completed its acquisition of TES Vsetin and MezServis, together known as TES.
Headquartered in Vsetin, Czech Republic, TES is a leading European designer of electric machines and components, predominantly generators for use in hydro, wind power and non-renewable energy generation. It is also a manufacturer and supplier of large specialised electric motors for various industrial applications.
Power generation from renewable sources is a rapidly growing area which continues to benefit from strong governmental backing, driven by European targets set for renewable energy production by 2020, and by heightened awareness of, and society’s drive for, sustainable energy generation. The increase in the share of renewable-based power generation is expected to lead to a significant step-change in investment in this area. Additionally, it is anticipated that regional government support will shift from large-scale projects to smaller, localised power projects of the type which are the focus of TES.
TES is a solid business which holds a strong position supplying power equipment to the renewable energy sector – a niche and very attractive growth market. Its excellent reputation and reliability of product make it very well positioned to grow market share in Europe and the US, both through new product development and the potential for consolidation. In addition Advent will partner with the existing management team in extending its development of own-branded products in its core hydro business, as well as in new segments such as wind energy to achieve a more focused and attractive sales mix and increase its share of sales to the renewable energy sector.
The investment in TES follows our long-standing strategy of investing in sectors where we have deep knowledge as well as our experience of helping companies enter new markets.