NKT Expands with €192m Acquisition of SolidAl

Danish cable manufacturer NKT has finalized the acquisition of SolidAl, a prominent Portuguese wire company, from Njord Partners for €192 million. This strategic move aims to bolster NKT’s capacity in medium- and high-voltage power cables, catering to the increasing demand driven by grid upgrades and renewable energy projects across Europe. See also: NKT Introduces Second Cable Laying Vessel, NKT Eleonora, to Run on Methanol According to NKT, SolidAl’s acquisition aligns perfectly with their growth strategy, enhancing their capability to deliver comprehensive grid solutions. NKT President and CEO Claes Westerlind highlighted the significance of the acquisition, stating, "SolidAl provides a strong strategic fit in terms of capacity and competence, strengthening NKT’s position in serving customers with end-to-end grid solutions, particularly the growing demand for medium- and high-voltage power cables up to 225 kV." Westerlind also expressed optimism about the future collaboration, saying, "We look forward to welcoming SolidAl’s highly skilled employees to NKT and continuing our growth journey together." See also: NKT’s Cable-Laying Vessel, NKT Victoria, Certified for Biofuel Use, Significantly Reducing Carbon Footprint SolidAl’s CEO, François Moufflet, emphasized the opportunity for expansion under NKT’s ownership, noting, "NKT’s acquisition of SolidAl is a testament to our team’s dedication and hard work." The acquisition includes plans for NKT to invest an additional €50 million in expanding the medium- and high-voltage production capacity at SolidAl’s existing site near Porto, Portugal, with operations expected to commence by 2027. This acquisition marks a strategic milestone for NKT, enhancing its production footprint in Southern Europe and strengthening its market presence in key European regions including France, UK, Ireland, Spain, and Portugal. See also: OX2 and Ingka Investments Secure Agreement with NKT for Offshore Wind Farm Power Cables Financially, SolidAl reported revenues of approximately €150 million and an EBITDA of around €20 million in 2023. NKT anticipates achieving recurring synergies from the acquisition, contributing to improved financial performance starting in 2025 and fully realized by the end of 2026. The transaction, funded within NKT’s existing capital structure, is set to support the company’s medium-term financial ambitions, including delivering a Return on Capital Employed (RoCE) above 20%.