DC Advisory advises Eltel Group on the sale of its German high voltage business unit to ENACO

Background

• DC Advisory (DC) advises Eltel Group (Eltel) - a provider of full scope services for the power and telco industry - on the sale of its German high voltage business to ENACO - a privately owned high voltage services provider
• Eltel´s German high voltage business unit provides technical services to key power infrastructure operators in Germany, and specializes in medium sized turn-key overhead line projects for high voltage infrastructure, predominantly in the 110kV space with capabilities in 220kV
• Their customer base comprises large transmission (eg Amprion, Transnet) and regional distribution (eg Westnetz, Mitnetz) overhead line technicians
• The unit has ~75 qualified technical workers with extensive sector experience

Process

• DC was engaged by Eltel to act as financial advisor in the divestment of its German and Polish assets, in line with Eltel’s strategy to focus on its Nordic home market
• DC has extensive expertise in the technical services sector, as well as unique access to a global network of potential buyers, having previously advised on M&A transactions across Europe in the space

Outcome

• Eltel has signed an agreement to divest its German high voltage business to ENACO
• DC’s transaction support activities resulted in an agreement with ENACO, which has been looking to strengthen its presence in the German market
• The transaction bolsters DC’s existing credentials in the technical services space
• The closing of this transaction is subject to customary regulatory approvals and closing conditions