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