Investora 24' - R&S Group aims to further strengthen its market position. ❤️
Reading time: 1-2 minutes
According to its own statements, the transformer manufacturer R&S Group is focusing primarily on further organic growth. Should attractive opportunities arise, however, acquisitions are also possible.
One example of a suitable deal was the purchase of the Irish manufacturer of distribution transformer solutions Kyte Powertech in August. "Kyte is in a sweet spot," said R&S CEO Markus Laesser on Thursday at the Investora investor conference.
The takeover has not only opened up new markets for R&S, but also broadened its technology base. The overlaps in the markets are very small, Laesser continued. Kyte is the market leader in Ireland and the UK. In addition, Kyte enables R&S to enter the markets in the Netherlands, Belgium and France, where it was previously hardly represented.
In the longer term, the acquisition of Kyte would also open up the US market. "Should we decide to enter the USA, we would be ready with the technology and the product," Laesser continued. However, expansion into the USA is not currently on the agenda.
Baltic states as a key market
"Next Monday will be a very important day for us," Laesser continued. This is when the final factory test for the expansion of the new plant in Poland will take place before production starts there.
With the expanded transformer plant there, the company intends to primarily serve the Baltic states as well as Norway, Sweden and Germany. The Baltic market in particular is very attractive and will be one of the key markets of the future. Two new nuclear power plants have just gone into operation there. In addition, numerous data centers are currently being built in the region, which have a great need for transformers.
The Basel-based R&S Group is a supplier of electrical infrastructure components in Switzerland and on international markets. It has six production sites in Switzerland, Italy, Poland and the Middle East and supplies both the domestic and various European export markets with small and medium-sized power and distribution transformers and other components for the energy supply, infrastructure and industrial sectors. The company was listed on the Swiss stock exchange in December 2023 through a merger with the Spac company VT5.
I am already Pre De-SPAC & will probably add a 3rd tranche sooner rather than later. (Currently 191 shares at Ø CHF 10.42)