In order to meet increasing demand for medium and high voltage cables driven by upgrades to the power grid and renewable energy projects in Europe, NKT has been on an acquisition spree in Portugal.
An agreement has thus been reached to buy the Portuguese cable manufacturer SolidAl from Njord Partners for a price of DKK 192 million. corresponding to 1.4 billion DKK.
With the purchase of SolidAI, NKT added 430 employees and a 70,000 m2 factory in Portugal, the cable manufacturer states in an announcement.
- SolidAl is a strong strategic match in terms of capacity and competence, strengthening NKT's position in serving customers with complete cable solutions, especially the growing demand for medium and high voltage cables up to 225 kV. We look forward to welcoming SolidAl's competent employees to NKT and continuing our growth journey together, says Claes Westerlind, CEO of NKT.
Investing l factory expansion
As part of the purchase, NKT will invest an additional DKK 50 million. euros in expanding the medium and high voltage capacity at the plant in Portugal. The new production capacity is expected to be operational in 2027.
- NKT is a widely recognized global leader in the production of cables and cable accessories, and I could not imagine a better owner to support SolidAl in expanding its commercial reach and technical capabilities, says François Moufflet, CEO of SolidAl.
With the acquisition of SolidAl, which has customers in France, Great Britain, Ireland, Spain and Portugal, NKT is expanding its business into new markets and strengthening its existing presence in others.
In 2023, SolidAl had a turnover (in market prices) of approx. 150 million euros and generated an EBITDA of approx. 20 million Euro. It is expected that the company will perform the same in the current year.
This is therefore in addition to NKT's financial expectations for 2024, where revenue is expected to be approx. 2.21-2.36 billion euros and operational EBITDA is expected to be approx. 285-335 million euros.
Text, graphics, images, sound, and other content on this website are protected under copyright law. DK Medier reserves all rights to the content, including the right to exploit the content for the purpose of text and data mining, cf. Section 11b of the Copyright Act and Article 4 of the DSM Directive.
Customers with IP agreements/major customer agreements may only share Danish Offshore Industry articles internally for the purpose of handling specific cases. Sharing in connection with specific cases refers to journaling, archiving, or similar uses.
Customers with a personal subscription/login may not share Danish Offshore Industry articles with individuals who do not themselves have a personal subscription to Danish Offshore Industry.
Any deviation from the above requires written consent from DK Medier.
