• The deal values SolidAl at an Enterprise Value (EV) of €192 million.
• SolidAl 2023 EBITDA was around €20m.
• Implied EV/EBITDA transaction multiples:
  • 9.4x 2023 EBITDA
  • 7.0x 2023 EBITDA (incl. synergies)
• NKT will also make additional investments of €50 million to increase medium- and high-voltage capacity. The new production capacity is anticipated to be operational in 2027.
• The acquisition was funded within NKT’s existing capital structure.

NKT President & CEO Claes Westerlind:

SolidAl provides a strong strategic fit in terms of capacity and competence, strengthening NKT’s 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’s highly skilled employees to NKT and continuing our growth journey together.

SolidAl is a leading manufacturer of power cables, conductors, and integrated solutions for energy transmission and distribution. The company is located 50km north of Porto, Portugal and employs 430 people.

Founded in 1970, SolidAl has established itself as a trusted supplier to European transmission and distribution system operators, including National Grid, RTE, REE, Enedis, ESB, and REN. SolidAl has a strong presence in France, UK, Ireland, Spain, and Portugal.

In 2023 the company recorded revenues of €150m and an EBITDA of approximately €20m. Medium and high voltage cables up to 225kV, mainly serving the power grid and distribution segment, accounted for 45-50% of SolidAl sales. Low voltage cables were 35-40% of sales, with specialty cables accounting for the remainder.

The acquisition will allow NKT to increase medium- and high-voltage capacity up to 225kV to meet what it calls a “structural increase in the demand for electricity from society.” It will also help NKT to grow its presence in new markets in Southern Europe.

NKT CEO Claes Westerlind explains the strategic rationale of the deal:

NKT President & CEO Claes Westerlind:

Today we have a strong presence in Northern and Central Europe, which has has now been expanded to France, the U.K., Spain and Portugal.

• NKT expects 70-80% of future revenue mix at SolidAl’s existing sites to come from medium to high voltage cables (up from 45-50% currently).
• NKT expects to benefit from €7 million of annual synergies by the end of 2026.