Encavis partners with KKR and Viessmann for strategic growth in renewable energy
Encavis AG, a leading German wind and solar park operator listed on the Prime Standard segment of the Frankfurt Stock Exchange under the symbol ECV and part of the MDAX index, has announced a significant partnership with Blitz 21-823 AG (soon to be Elbe BidCo AG, “BidCo”), a holding company influenced by investment funds and accounts managed by Kohlberg Kravis Roberts & Co. L.P. (KKR) and its affiliates. In a strategic move to support Encavis’ long-term growth, the family-owned Viessmann GmbH & Co. KG will also join as a co-investor in the KKR-led consortium.
BidCo has declared its intention to launch a voluntary public takeover offer for all outstanding shares of Encavis at a cash consideration of EUR 17.50 per share. This offer is supported by binding agreements with Abacon Capital GmbH and several existing shareholders, who collectively represent about 31% of Encavis’ total share capital. These shareholders will transition to become indirect long-term investors in Encavis under the new structure.
The Management Board and the Supervisory Board of Encavis have endorsed the execution of the Investment Agreement, signaling their support for the Offer, pending a thorough review of the forthcoming Offer Document. Both boards anticipate recommending Encavis’ shareholders to accept the Offer, aligning with their fiduciary duties.
Dr. Christoph Husmann, CFO of Encavis, remarked on the company’s growth trajectory and the partnership’s potential to further amplify its ambitions in the renewable energy sector. “Over the past years, Encavis has grown into one of the leading independent power producers in Europe… The Offer of EUR 17.50 per share represents an attractive premium for our shareholders… we are convinced that with the additional financial and strategic support, we will be able to leverage our assets and competences and take our business to the next level…”
Tobias Krauss, CEO of Abacon, expressed optimism about Encavis’ prospects and the value of strong partnerships, while Vincent Policard of KKR highlighted the strategic investment’s role in bolstering Encavis at a critical juncture for the company. Max Viessmann, CEO of Viessmann, underscored the collaboration’s importance in driving forward the company’s commitment to the planet’s future through renewable energy.
The planned strategic partnership is poised to reinforce Encavis’ stature as a premier onshore wind and solar platform across Europe. BidCo’s vision extends to amplifying Encavis’ growth in various segments, boosting its project pipeline, and facilitating expansion into new markets. With a goal to achieve 7 GW of installed capacity by the end of 2027, exceeding the current target of 5.8 GW, the partnership is setting the stage for continued advancement in renewable energy.
The consortium’s commitment extends beyond financial investment, emphasizing the maintenance of the existing management team, employee positions, and the company’s registered office in Hamburg. This holistic support underlines a shared vision for the future of renewable energy, backed by considerable expertise and resources from KKR and Viessmann.