Financial investor EQT sells Getec to the infrastructure unit of JP Morgan
Magdeburg/ Munich — One of Germany’s largest energy service providers is being sold. The Swedish investment fund EQT sells its 75 percent stake in Magdeburg-based Getec. The buyer is Infrastructure Investments Fund (“IIF”), an investment firm advised by J.P. Morgan Investment Management. — GEH, the family holding company of company founder Karl Gerhold, is also selling its shares. EQT holds 75 percent of the shares, Gerhold the remaining 25 percent. The authorities still have to approve the transaction. Closing is expected at the end of the first quarter of 2022.
As various media reported a few weeks ago, Getec could be valued at twenty times its Ebitda of around 200 million euros in the event of a sale — that would be around 4 billion euros including debt. The high valuation is supported by the fact that Ebitda margins in this sector are often in the double-digit range, especially for businesses with good capacity utilization. Companies in this segment are therefore very profitable.
G+E GETEC, headquartered in Magdeburg, Germany, offers industrial and real estate companies customized, efficient and sustainable energy solutions designed and implemented by highly qualified engineering teams. The company was founded in 1993 by Dr. Karl Gerhold and today operates more than 11,500 power generation plants in nine European countries with more than 5.2 GWth total installed capacity and over 2,200 employees. G+E GETEC is highly integrated into its customers’ operations and provides essential services under long-term contracts.
Since the acquisition of EQT Infrastructure as the new majority shareholder in 2017, GEH and EQT Infrastructure have jointly taken a number of initiatives to future-proof GETEC. The company was driven by a new management team of experienced executives led by CEO Thomas Wagner and supported by a high-caliber industry advisory board. Key achievements include the development of a world-class sales function, the optimization of G+E GETEC’s operations, the digitalization of the equipment portfolio and the expansion of the range of environmentally friendly solutions.
In addition to strong organic growth, G+E GETEC, with the support of EQT Infrastructure and GEH, has developed from a German to a European market leader through six large-scale mergers and acquisitions and has established a strong foothold in Switzerland, Italy and the Netherlands.
GETEC Energie Holding, EQT Infrastructure and the management of G+E GETEC are confident that IIF is the right partner to continue this exceptional progress and further G+E GETEC’s mission to support industrial and real estate customers across Europe on their decarbonization journey.
Matthew LeBlanc, Chief Investment Officer at IIF, says: “We are excited to invest in G+E GETEC, a leading sustainable energy services company and a strategic platform uniquely positioned to catalyze the energy transition across Europe. We look forward to building on the unparalleled track record of growth and innovation that EQT Infrastructure, Dr. Karl Gerhold and the management team have demonstrated. We look forward to the significant additional investment opportunities to support the collective growth ambitions of G+E GETEC’s customers and employees.”