R&S Group acquires Kyte Powertech: the advisors
Baker McKenzie advised R&S Group Holding a provider of electrical infrastructure components, on its acquisition of Kyte Powertech Limited (“KILO”), an Ireland-based manufacturer of distribution transformers, with a bridge financing provided by UBS Switzerland, advised by Advestra. UBS Switzerland acted as mandated lead arranger, underwriter, agent, security agent and lender in the transaction.
R&S Group agreed to acquire Kyte Powertech from MML Growth Capital Partners Ireland and its existing management for an enterprise value of EUR 250 million.
The acquisition will enhance R&S Group’s product portfolio, giving it access to new markets by adding a regional footprint in Ireland, the UK and Western Europe. In addition, the transaction will increase R&S Group’s leading market positions across focused products and markets and offers the company synergies from cross-selling opportunities and operating efficiencies.
Advestra’s team
Advestra acted as legal counsel to UBS Switzerland AG in the transaction. The team included Alexander von Jeinsen, Alexander Fisch, Martina Giacometti and Elisabeth Lagler (all Financing) as well as Céline Martin (Tax).
Baker McKenzie’s team
Baker McKenzie Switzerland advised R&S Group on all aspects of the transaction, except as to Irish law, which was covered by Arthur Cox LLC.
The mergers & acquisitions and capital markets team was led by Matthias Courvoisier (pictured center) and Yves Mauchle (pictured right) and included the following Baker McKenzie lawyers:
Baker McKenzie Zurich:
- Alexander Blaeser, Susanne Liebel-Kotz, Tanja Schmid, Jan Lusti, Benedikt Rutscheidt, Laksanaporn Chaiyakham, Jasmin Spörri, Lukas Bader
Baker McKenzie Brussels:
- Dominique Maes, Davinia Martens, Sebastian Tytgat, Eline Kegels, Marthe Teerlynck
Baker McKenzie Amsterdam:
- Rebecca Kuijpers-Zimmerman, Laila Kouchi, Magdalena Kučko, Nathalja Doing
Baker McKenzie London:
- James Heller, George Ewen, Patrick Sharkey
The Zurich-based debt financing team was led by Markus Wolf and further included Sammy Guidoum and Robert Matic.
About the funding for the acquisition
The funding for the acquisition was secured by a bridge loan amounting to CHF 233 million as well as a rollover of a significant portion of shares held by the existing Kyte Powertech management into RSGN shares. The bridge loan is expected to be refinanced by a combination of a new bank debt facility, excess cash and an equity issuance of approximately CHF 23 million, for which R&S has secured commitments.
R&S Group
R&S Group’s operating headquarters are located in Sissach/BL, Switzerland. With six manufacturing facilities in Switzerland, Italy, Poland and the Middle East, R&S Group serves its domestic and various European export markets with small and medium power and distribution transformers and other components in the utility, infrastructure and industrial sectors.
Kyte Powertech
Kyte Powertech, founded in 1977 and headquartered in Cavan, Ireland, is a manufacturer of distribution transformer solutions, with its main markets being Ireland, the UK, the Netherlands, Belgium and France.
