R&S Group Holding AG has announced its acquisition of Kyte Powertech Limited, a leading Irish manufacturer of distribution transformer solutions, for an enterprise value of €250 million. This strategic move will broaden R&S Group's geographic presence across Ireland, the UK, and Western Europe, significantly enhancing its product portfolio and market reach.

The acquisition will see Kyte Powertech bring in pro forma net sales of €402 million, EBITDA of €85 million, and EBIT of €82 million, based on the last twelve months as of June 2024. The deal is expected to create synergies through cross-selling opportunities and operational efficiencies, strengthening the combined group’s management capabilities and technical expertise.

Kyte Powertech has a strong market presence, with its products highly regarded in Ireland, the UK, the Netherlands, Belgium, and France. The company, which has about 490 employees, will continue its operations in Cavan, Ireland, where R&S Group intends to invest in capacity expansion and technology enhancements. Kyte Powertech's management team, led by Stephanie Leonard, has committed to staying on board and will hold a 6% stake in R&S Group as part of the acquisition deal.

The transaction is expected to close today, with funding secured through a €244 million bridge facility and a combination of debt, cash, and equity issuance.

Source: ir.the-rsgroup.com