GED in €12m Romanian energy deal(3)

The Madrid-based private equity house has snapped up a 60% stake in Romanian cogeneration specialist Total Eurobusiness, marking its third transaction this year.

Mid-market private equity firm GED has acquired a 60 percent interest in Romanian cogeneration specialist Total Eurobusiness (TEB).

GED said in a statement that it had bought the stake through a €6 million capital increase, adding that its total investment in the company will ultimately reach €12 million.

TEB focuses on comprehensive cogeneration projects which are sold as turn-key or build-own-operate-transfer schemes. Last year TEB installed equipment with a combined capacity of 13 megawatts, and it is set to install a further 60 megawatts of equipment over the next two years. The company recorded sales of €7 million last year, which it is aiming to increase by 20 percent this year and double by 2010.

GED said it decided to acquire TEB due to its “privileged position” in the Romanian market, adding that it sees a high growth potential for energy saving companies in Eastern Europe and in Romania in particular.

Following the acquisition, Julio López Castaño has been appointed chairman of TEB’s board of directors, and will sit alongside the firm’s existing executives and founders.

The acquisition of TEB represents the third transaction that GED has closed this year, following its purchase of Romanian medical equipment distribution company Diamedix and the Portuguese civil engineering outfit FASE. GED manages a total fund volume of around €350 million.