A transaction is in motion that will result in Swiss firm R&S Group purchasing Kyte Powertech, based in Cavan, for a sum believed to approach €250 million. This business move will result in MML Capital Ireland surrendering its stake within the Irish company, having previously supported a management acquisition back in 2020. R&S Group, a celebrated manufacturer of electrical distribution transformers, is set to acquire Kyte Powertech which specialises in the creation of both pole-mounted and ground-mounted units, substations and other electrical paraphernalia. Although not officially divulged, insiders hint that the currency for the transaction will be approximately €250 million, which would situate this deal amongst the largest of the year.
As a consequence of this agreement, MML Capital Ireland is poised to relinquish the expansive 40% stake it held in Kyte Powertech since 2020. The firm had previously supported a managerial purchase of the company.
A majority share of the stakes, around 60%, belong to the management squad headed by CEO Stephanie Leonard, who is set to stay in her commanding role post-acquisition. According to Ms Leonard, the timing of the acquisition could not have been more ideal, it will give them the necessary momentum to capitalise on the expanding European market opportunities and beyond.
Kyte Powertech, dating back to 1977 under the name Pauwels Trafo before its 2020 rebranding following a management buyout, is hoping to amass a turnover of approximately €165 million this year. Proudly boasting a clientele that includes ESB, National Grid Group in the UK and SP Energy Networks, Kyte Powertech is a prominent player within the electrical distribution transformers market in both Ireland and the UK, as well as maintaining a substantial presence in Belgium and the Netherlands. With a workforce exceeding 450 people until March 2023, the firm expects to continue scaling within the industry.
Ms Leonard commented that their robust market reputation, extensive customer loyalty and vital manufacturing and testing amenities in Cavan, which have room for expansion, were key aspects of their business.
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R & S group’s Chief Executive, Markus Laesser, stated that the recently made agreement would offer the group access to markets they are not presently engaged with.
Rory Quirke, partner and co-head of investments at Irish firm, MMP Capital, commented that their recent firm exit – marking their 10th in Ireland since their 2013 inauguration – emphasises their dedication to aiding companies to maximise their potential.
The company has been considerably involved in market activity this year, and last month, MML offloaded its share in Eastland Engineering Supplies, a Dublin-based supply chain management company, for a return tripling its initial investment, believed to be around €30 million.
MML Capital is also behind the recent acquisition of a Kilkenny-based logistics and cold chain specialist, Allmed, by Virginia Transport. This is a warehousing and freight transport enterprise that MML acquired in 2022.
Established in London in 1988 by Rory Brooks and Jim Read, MML Capital manages assets valued approximately at €2 billion.