Gilde exits Powerlines to trade

Powerlines was a Gilde Buyout Fund III portfolio company. The fund closed on €600m in 2006 and, following this transaction, has one unrealised asset, Plukon Royale Group.

Engie will acquire the company through its electrical engineering, information and communications systems subsidiary Engie Ineo.

Following the acquisition, Engie plans to engage in a number of projects. The company plans to roll out both infrastructure projects and digital services, including on-board mobile connectivity with its subsidiary Icomera, operation support with its Navineo module, and charging stations for vehicles and electric buses.

Powerlines currently generates revenues of €161.2m.

Previous funding
In 2003, Siemens sold its Siemens Powerlines subsidiary to the management of the business. That year it generated €25m in revenues.

Invest Equity took a 49% stake in the company in 2006, when it generated €40m in revenue, according to Unquote sister publication Mergermarket. That year, the company also acquired the catenary line construction business from Siemens. The investment from the private equity house was intended to fund a merger of equals with a foreign rival.

Gilde Buyout Partners acquired a majority stake in Powerlines from Invest Equity in 2008. Unquote understood the enterprise value of the company to be around €115m with a structure of around €65m in debt and €55m in equity. The management, which owned a stake of around 50%, reinvested in the company and retained around 20% of the company. In 2008, the company generated revenues of €124m.

In 2009, Gilde financed the acquisition of Swedish business Line CNM and the UK-based Border Rail group of companies in two all-equity deals.

In 2012, Gilde hired Rothschild to run a sale process for the company, though Gilde retained ownership. At the time, Invest Equity retained a 3% holding in the company. Powerlines generated €200m in revenue in 2012.

Company
Based in Vienna and founded in 2003, the company employs 3,000 people. Powerlines designs, installs and maintains electrification systems for railway networks and focuses on both urban modes of transport (metros, tramways and buses) and intercity modes of transport (conventional and high-speed lines).

People
Engie – Wilfrid Petrie (executive vice-president).
Powerlines – Gerhard Ehringer (CEO).

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• Topics
• Exits
• DACH
• Industrials
• Austria
• Gilde Buy Out Partners
• Trade sale