Advent International, the global private equity firm, has executed the sale of SAG, the European provider of energy-related infrastructure services to utilities, to private equity group EQ
Advent International, the global private equity firm, has executed the sale of SAG, the European provider of energy-related infrastructure services to utilities, to private equity group EQT.
In May 2006, Advent International invested in SAG as part of the acquisition of a diversified portfolio of five industrial energy-related services businesses – RWE Solutions Group – from German energy provider RWE.
Headquartered in Langen, Germany, SAG is one of Europe’s largest energy infrastructure services companies and the German market leader. Employing 5,900 staff, the company provides build and maintenance outsourcing services to utility transmission and distribution grids.
Since its investment, Advent has worked closely with SAG’s management to streamline the business and reduce the complexity of its previously conglomerate-like structure. A focus on core infrastructure services has improved SAG’s profitability, with current revenues approximately EUR 770 million.
As a result, SAG today operates from a strong platform and is in an excellent position to benefit from the anticipated growth of energy-related infrastructure services in Western and Central & Eastern Europe. The most significant opportunities lie in the field of infrastructure refurbishments and services in the renewable energies sector. SAG is also set to benefit from the liberalisation and privatisation of the eastern European energy sector as well as continued market growth in Germany and France).
‘SAG exemplifies a classic Advent International investment where we were able to create significant value through strategic restructuring,’ says Ralf Huep, a managing director at Advent International in Frankfurt. ‘Working closely with SAG’s experienced management team, Advent was able to refocus the business on its key strengths enabling the company to establish a leading position in Europe. The company is now ideally positioned to capitalise on market growth.’
SAG chief executive Michael Stadler says: ‘Since Advent’s acquisition our company has gone through an impressive streamlining process by focusing on our core competencies and improving profitability. These initiatives have resulted in higher margins and given SAG an excellent platform for future growth. We look forward to the next stage of our expansion and leveraging the significant growth potential offered by the European market.’
Advent has over 20 years’ experience investing in Germany’s industrial sector and is one of the country’s most established private equity investors with 12 transactions completed since 2005. Recent investments include H.C. Starck (manufacturer of refractory metals, advanced ceramics and electronic chemicals), Oxea (a leading global producer of oxo chemicals and its derivatives) and the sale of HT Troplast (a leading global diversified plastics manufacturer).
Founded in 1984, Advent International has more than 100 investment professionals in western and central Europe, North America, Latin America and Asia and focuses on cross-border, strategic restructuring and growth opportunities in five core sectors. Since its establishment, Advent has raised GBP 6 billion in private equity capital and completed more than 200 buyout and private equity transactions valued at over GBP 15 billion in 35 countries.
