Energy: Energy service provider Getec sold – valuation is more than four billion euros
Frankfurt The Magdeburg energy service provider Getec is getting a new owner. The Infrastructure Investment Fund (IIF), which belongs to JP Morgan, buys the company from the investor EQT and the founder. According to financial circles, the valuation is over four billion euros, which makes the deal the largest of the year in the German energy infrastructure sector.
The holding company EQT, which acquired 75 percent of Getec from founder Karl Gerold in 2016, put Getec up for sale a few weeks ago. The holding companies KKR and Blackstone had also submitted binding offers. The transaction is expected to close by the end of the first quarter.
Getec is a producer of decentralized energy and supplies heat and electricity to industrial and real estate customers such as shopping centers. The group employs 2,200 people and currently operates 11,500 systems for decentralized energy generation in Germany and countries such as the Netherlands, Switzerland and Italy. Their combined heat and power plants have a total capacity of over 5200 megawatts. Around one million people are supplied with heating, cooling and electricity, almost a third with regenerative energy.
Companies in the industry are rated highly as investors look for investment opportunities in the low interest rate environment and infrastructure investments tend to generate solid returns. With Getec, IIF has also acquired a company that plays a central role in the energy transition.
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Getec already has a contractually agreed timetable for phasing out coal and wants to switch completely to renewable energy sources by 2040. The last gas-fired power plant is to be built in the early 2030s. With an operating result (Ebitda) of a good 230 million euros, Getec has a margin of 15 percent.
The company was founded in 1993 by the entrepreneur Karl Gerhold, who continued to hold 25 percent of the shares after EQT joined the company. With the help of the funds provided by EQT, Getec has grown strongly and has taken over a number of companies, including the Italian competitor Antas, the industrial parks of Clariant and Novartis near Basel and the infrastructure business of Apleona, formerly Bilfinger Berger.
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