Advent buys German energy portfolio

Mid-market buyout firm Advent International has acquired RWE Solutions Group, a portfolio of five energy companies, from German energy business RWE.

Global private equity firm Advent International has acquired several business units from German energy group RWE.

Advent has acquired RWE Solutions Group, which comprises SAG, Nukem, RWE Industrie- Lösungen, RWE Space Solar Power and Lahmeyer International, for an undisclosed sum.

According to a report in today’s Financial Times Deutschland, the transaction price was around €650 million to €750 million, including debt. Advent said in a release that the combined companies collectively employ approximately 9,500 staff and generated sales of approximately €1.7 billion ($2.16 billion) in 2005.

Advent was not immediately available for comment.

SAG and Nukem are the two largest companies in the RWE Solutions Group portfolio. Langen-headquartered SAG, a provider of energy-related infrastructure services to utilities, had sales of €1 billion in 2005.

Alzenau-headquartered Nukem works in the field of nuclear fuel cycle and decommissioning services in the UK, Germany and Eastern Europe. The company is also the world’s largest independent uranium trader.

Advent said that SAG will benefit from increasing investment in energy infrastructure on the part of utilities, while Nukem will capitalise on global demand for the decommissioning of nuclear facilities, particularly in central and eastern Europe.

RWE Solutions is Advent’s first German investment in 2006, following five transactions in the German market last year: in July, Advent sold industrial electronics group Moeller to Doughty Hanson for €1.1 billion; acquired a 45 percent stake in plastics business HT Troplast for a consideration of €300 million in August; purchased a 65 percent stake in stationary company Herlitz for an undisclosed sum the same month; sold its interest in pharmaceutical manufacturer Viatris in September in a €750 million deal; and bought private nursing home group Case Reha, also in September.