2 May 2011, Prague - Advent International, the global private equity firm, today announced that it has agreed to acquire 100% of the shares in TES Vsetin and MezServis (together “TES” or the “Company”) for an undisclosed amount.
TES is a leading European manufacturer of tailor-made power generators and components used in the production of hydro, wind and non-renewable energy generation. The Company is also a manufacturer and supplier of large specialised electric motors for various industrial applications. TES is based in Vsetin, Czech Republic, employing around 670 people and is currently majority owned by Penta Investments.
Power generation from renewable sources is a rapidly growing market 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. It is estimated that in order to achieve current targets alone, an investment into renewable energy of circa €27 billion will be required across Europe. In addition, 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.
Commenting on the acquisition, Chris Mruck, Managing Partner and Co-Head of Central Europe, Advent International said: “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.”
Peter Nachtnebel, Director with Advent International, added: “We look forward to working with the management team of TES, applying our deep knowledge of the industrials sector as well as our experience of helping companies enter new markets. TES is a multi-market and multi-product business, with long-standing customer relationships, strong on R&D and innovation and with a highly skilled workforce. There are many attractive opportunities facing the Company, which, if capitalised upon, will boost the business on its way to becoming a global player.”
David Becvar, CEO of TES, commented: “The acquisition of TES by Advent International is a recognition of both, the Company’s strengths and its potential in the global marketplace. I am excited to have such an experienced investor as a partner for the next phase of the development of TES and look forward to working with the Advent team.”
Advent International has been active in the industrial sector for over 20 years and has invested in and supported over 70 companies globally to achieve successful growth. It has been investing across Central Europe with local funds and offices since 1994. Among Advent’s previous investments in the industrials sector is Boart Longyear, the leading provider of drilling services, tools and equipment for the mining, construction, water and environmental industries worldwide, from which Advent exited in 2007. Other past investments include German electronic components manufacturer Moeller, where Advent implemented a highly successful turnaround programme, and RWE Solutions, a diversified portfolio of five industrial energy-related services businesses. Advent remains an investor in one of these businesses, Nukem, an international leader in nuclear fuel cycle and decommissioning services.
Advent’s current industrials sector investments include: BOS Solutions Ltd, a leading full-service provider of drilling fluid treatment and recovery solutions to oil and gas exploration and production (E&P) companies and Oxea, one of the world's leading manufacturers of Oxo chemicals.
Advent was advised by Deloitte (M&A and Financial Diligence), CMS (Legal) and McKinsey & Company (Market Diligence). The acquisition debt is arranged by UniCredit and Komercni Banka.
The transaction is expected to complete within two months following regulatory approval.