To meet the increasing demand for medium and high voltage cables driven by grid upgrades and renewable energy projects in Europe, NKT has been making acquisitions in Portugal.
Thus, an agreement has been reached to acquire the Portuguese cable manufacturer SolidAl from Njord Partners for a price of 192 million, equivalent to 1.4 billion kroner.
With the acquisition of SolidAI, NKT has added 430 employees and a 70,000 m2 factory in Portugal, the cable manufacturer said in a statement.
- SolidAl is a strong strategic match in terms of capacity and competence, which strengthens NKT's position in serving customers with complete cable solutions, especially the increasing 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 in factory expansion
As part of the acquisition, NKT will invest an additional 50 million euros in expanding the medium and high voltage capacity at the factory 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, the UK, 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 approximately 150 million euros and generated an EBITDA of approximately 20 million euros. The company is expected to perform the same in the current year.
This is therefore in addition to NKT's financial expectations for 2024, where turnover is expected to be approximately 2.21-2.36 billion euros and operational EBITDA is expected to be approximately 285-335 million euros.
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