NKT – NKT acquires SolidAl, adding medium- and high-voltage capacity to address growing grid demand


NKT has acquired SolidAl, a Portugal-based power cable company, from Njord Partners, adding medium- and high-voltage capacity to meet the growing demand from grid upgrades and renewable energy projects across Europe. 


As part of the acquisition, NKT will invest in additional capacity at the existing site.


As the electrification of society continues to gain momentum, power generation and consumption is increasing. Upgrading Europe’s aging power grid infrastructure and connecting a growing number of renewable power projects is driving demand for medium- and high-voltage power cables. According to the International Energy Agency (IEA), reaching national climate goals requires adding or refurbishing a total of more than 80 million kilometres of power grids by 2040, the equivalent of the entire existing global grid and the European Union estimates that Europe will need to invest EUR 584bn to upgrade its power grids this decade. 

To satisfy this growing demand from power grid customers, NKT has acquired SolidAl. The acquisition is supporting NKT’s growth strategy and will:

  • Increase medium- and high-voltage capacity up to 225kV
  • Improve competitiveness of NKT’s product offering and geographical reach across new and existing markets
  • Provide a competitive, competent and expandable platform for future growth to serve increased demand
  • Support NKT’s medium-term ambitions, including RoCE above 20%

“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. We look forward to welcoming SolidAl’s highly skilled employees to NKT and continuing our growth journey together. With more than 50 years in the industry, SolidAl will complement the competitiveness of the product mix from NKT’s existing factories in Asnaes, Velke Mezirici and Cologne focusing on delivering the full range of power cables for the grid at a larger scale,” says Claes Westerlind, President and CEO of NKT.


“NKT’s acquisition of SolidAl is a testament to our team’s dedication and hard work. NKT is a widely recognized worldwide leader in the manufacturing of power cables and accessories, and I could not think of a better owner to support SolidAl in expanding its commercial reach and technical capabilities,” says François Moufflet, CEO, SolidAl.


Adding an established production footprint in Southern Europe will enhance NKT’s geographical footprint and reach in selected key markets. SolidAl’s strong presence in France, UK, Ireland, Spain, and Portugal expands NKT into new markets and strengthens its existing foothold in others.

In 2023, SolidAl had revenue (in market prices) of approximately EUR 150m and generated an EBITDA of approximately EUR 20m. NKT has acquired SolidAl for a total enterprise value of EUR 192m, corresponding to an EV/EBITDA multiple of 9.4x. NKT has identified recurring synergies which will gradually contribute to an improved financial performance starting in 2025 and are expected to be fully realized by end 2026. Including synergies, the acquisition of SolidAl corresponds to an EV/EBITDA multiple of 7.0x.

As part of the acquisition, NKT will invest an additional EUR 50m to expand the medium- and high-voltage capacity at the existing site. The new production capacity is anticipated to be operational in 2027. The acquisition, including the investment, is expected to support NKT’s medium-term financial ambitions including delivering RoCE above 20%.

The transaction is unconditional, and closing is effective as of today. The acquisition was funded within the existing capital structure. NKT remains committed to a conservative capital structure with leverage ratio <0.0x catering for the investment programs ongoing and enabling the high-voltage projects.

SolidAl is expected to contribute to NKT’s financial performance from the date of closing. The contribution is expected to be in line with 2023 and will come in addition to NKT’s 2024 financial outlook announced in company announcement no. 3 of 21 February 2024, which remains unchanged.


Transaction overview

  • Enterprise value (EV) at closing of EUR 192m
  • Additional investments of EUR 50m to increase medium- and high-voltage capacity
  • SolidAl EBITDA:
    • 2023: Approximately EUR 20m
  • Implied EV/EBITDA transaction multiples:
    • 9.4x 2023 EBITDA
    • 7.0x 2023 EBITDA (incl. synergies)
  • Transaction Enterprise Value: EUR 192m (~9.4x 2023 EBITDA / ~7.0x 2023 EBITDA including synergies)


Key facts about SolidAl

  • 430 employees
  • 1 kV-225 kV production capacity
  • 70,000 m2 factory footprint
  • Located 50 km north of Porto, Portugal
  • Founded in 1970
  • Owned by Private Equity firm, Njord Partners since 2018.


Teleconference NKT A/S hosts a teleconference for investors and financial analysts at 12:00 pm CEST on 21 June 2024. The presentation to be used during the call will be available before the start of the teleconference. To attend, please register and access on investors.nkt.com



EMR Analysis

More information on NKT: See the full profile on EMR Executive Services

More information on Claes Westerlind (President and Chief Executive Officer, NKT): See the full profile on EMR Executive Services

More information on Line Andrea Fandrup (Executive Vice President, Chief Financial Officer, NKT): See the full profile on EMR Executive Services


More information on SolidAl by NKT: https://www.solidal.pt/ + Solidal is a leading manufacturer of power cables, conductors and integrated solutions for energy transmission and distribution from 1 kV up to 400 kV.

Our clients are international utilities, wholesalers and contractors who rely on us for a wide product range and integrated technical solutions

The company has over 50 years of experience delivering power cables (including High Voltage, Medium Voltage, Low Voltage, ACSR and Aluminium Conductors) for projects across over 40 countries.

  • Founded in 1970
  • Revenue: ~ 150 m€
  • Markets: 40
  • Employees: 430

Quintas & Quintas group was founded in 1925. Solidal was founded in 1970 and integrated Quintas & Quintas group in 1987.

In January 2019, Njord Partners LLP (with its affiliated entities and managed funds “Njord”) acquired a majority (87,5%) shareholding in Solidal – Condutores Eléctricos, S.A. The Quintas family maintains a participation of 12,5%.

More information on François Moufflet (Group Chief Executive Officer, SolidAl, NKT): See the full profile on EMR Executive Services


More information on Njord Partners: https://njordpartners.com/ + Njord Partners is a special situations investment manager and provider of long-term flexible capital solutions. Established in 2013, Njord Partners manages capital in excess of €1 billion. Investing in European middle-market companies facing complex situations, its mission is to deliver superior risk-weighted returns to investors while preserving capital. As a capital partner, Njord Partners offers flexible debt and equity solutions, actively facilitating strategic and operational enhancements within its portfolio companies to drive value.

More information on Arvid Trolle (Co-founder and Partner, Njord Partners): https://njordpartners.com/njord-partners-sells-solidal-to-nkt/ + https://www.linkedin.com/in/arvid-trolle/ 


More information on IEA (International Energy Agency): https://www.iea.org + The IEA is at the heart of global dialogue on energy, providing authoritative analysis, data, policy recommendations, and real-world solutions to help countries provide secure and sustainable energy for all.

The IEA was created in 1974 to help co-ordinate a collective response to major disruptions in the supply of oil. While oil security this remains a key aspect of our work, the IEA has evolved and expanded significantly since its foundation.

Taking an all-fuels, all-technology approach, the IEA recommends policies that enhance the reliability, affordability and sustainability of energy. It examines the full spectrum issues including renewables, oil, gas and coal supply and demand, energy efficiency, clean energy technologies, electricity systems and markets, access to energy, demand-side management, and much more.

Since 2015, the IEA has opened its doors to major emerging countries to expand its global impact, and deepen cooperation in energy security, data and statistics, energy policy analysis, energy efficiency, and the growing use of clean energy technologies. 

More information on Dr. Fatih Birol (Executive Director, International Energy Agency): https://www.iea.org/contributors/dr-fatih-birol + https://www.linkedin.com/in/fatih-birol/ 


More information on The European Union: https://european-union.europa.eu/index_en + The European Union’s institutional set-up is unique and its decision-making system is constantly evolving. The 7 European institutions, 7 EU bodies and over 30 decentralised agencies are spread across the EU. They work together to address the common interests of the EU and European people. 

In terms of administration, there are a further 20 EU agencies and organisations which carry out specific legal functions and 4 interinstitutional services which support the institutions.

All of these establishments have specific roles – from developing EU laws and policy-making to implementing policies and working on specialist areas, such as health, medicine, transport and the environment.

There are 4 main decision-making institutions which lead the EU’s administration. These institutions collectively provide the EU with policy direction and play different roles in the law-making process: 

  • the European Parliament (Brussels/Strasbourg/Luxembourg)
  • the European Council (Brussels)
  • the Council of the European Union (Brussels/Luxembourg)
  • the European Commission (Brussels/Luxembourg/Representations across the EU)

Their work is complemented by other institutions and bodies, which include:

  • the Court of Justice of the European Union (Luxembourg)
  • the European Central Bank (Frankfurt)
  • the European Court of Auditors (Luxembourg)

The EU institutions and bodies cooperate extensively with the network of EU agencies and organisations across the European Union. The primary function of these bodies and agencies is to translate policies into realities on the ground.

Around 60,000 EU civil servants and other staff serve the 450 million Europeans (and countless others around the world).

Currently, 27 countries are part of the EU: https://european-union.europa.eu/principles-countries-history/country-profiles_en 

More information on The European Commission: https://ec.europa.eu/info/index_en + The Commission helps to shape the EU’s overall strategy, proposes new EU laws and policies, monitors their implementation and manages the EU budget. It also plays a significant role in supporting international development and delivering aid.

The Commission is steered by a group of 27 Commissioners, known as ‘the college’. Together they take decisions on the Commission’s political and strategic direction.

A new college of Commissioners is appointed every 5 years.

The Commission is organised into policy departments, known as Directorates-General (DGs), which are responsible for different policy areas. DGs develop, implement and manage EU policy, law, and funding programmes. In addition, service departments deal with particular administrative issues. Executive agencies manage programmes set up by the Commission.

Principal roles in law: The Commission proposes and implements laws which are in keeping with the objectives of the EU treaties. It encourages input from business and citizens in the law-making process and ensures laws are correctly implemented, evaluated and updated when needed.

More information on Ursula von der Leyen (President, The European Commission): https://ec.europa.eu/commission/commissioners/2019-2024/president_en + https://www.linkedin.com/in/ursula-von-der-leyen/ 






EMR Additional Notes:

  • Grid, Microgrids, DERs and DERM’s:
    • The power grid is a network for delivering electricity to consumers. The power grid includes generator stations, transmission lines and towers, and individual consumer distribution lines.
    • The grid constantly balances the supply and demand for the energy that powers everything from industry to household appliances.
    • Electric grids perform three major functions: power generation, transmission, and distribution.
    • A microgrid is a small-scale power grid that can operate independently or collaboratively with other small power grids. The practice of using microgrids is known as distributed, dispersed, decentralized, district or embedded energy production.
    • Smart Grid is any electrical grid + IT at all levels . Micro Grid is a group of interconnected loads and DERs (Distributed energy resources) within a clearly defined electrical and geographical boundaries witch acts as a single controllable entity with respect to the main grid.
    • Distributed energy resources (DERs) are small-scale electricity supply (typically in the range of 3 kW to 50 MW) or demand resources that are interconnected to the electric grid. They are power generation resources and are usually located close to load centers, and can be used individually or in aggregate to provide value to the grid.
    • Common examples of DERs include rooftop solar PV units, natural gas turbines, microturbines, wind turbines, biomass generators, fuel cells, tri-generation units, battery storage, electric vehicles (EV) and EV chargers, and demand response applications.
    • Distributed energy resources management systems (DERMS) are platforms which helps mostly distribution system operators (DSO) manage their grids that are mainly based on distributed energy resources (DER).
    • DERMS are used by utilities and other energy companies to aggregate a large energy load for participation in the demand response market. DERMS can be defined in many ways, depending on the use case and underlying energy asset.


  • Extra Low-Voltage (ELV):
    • Voltage of 50V or less (AC RMS), or 120V or less (ripple-free DC).
  • Low-Voltage (LV):
    • The International Electrotechnical Commission (IEC) defines supply system low voltage as voltage in the range 50–1000 V AC or 120–1500 V DC.
  • Medium-Voltage (MV):
    • Medium-voltage circuit breakers rated between 1 and 35/72 kV.
  • High-Voltage (HV):
    • The International Electrotechnical Commission define high voltage as above 1000 V for alternating current, and at least 1500 V for direct current.
  • Super High-Voltage: 
    • Is >300kV.
  • Ultra High-Voltage: 
    • Is >1.000kV.


  • Kilovolt-Amperes (kV):
    • Kilovolt or “kV” means a unit of potential difference equal to 1,000 volts. Kilovolt or “kV” means the potential difference between two points on a conductor carrying a current of one ampere when the power dissipated between the two points is one kilovolt-ampere. Kilovolt means one thousand volts (kV).
  • Kilovolt (kVA):
    • kVA stands for Kilo-volt-amperes – a term used for the rating of an electrical circuit. kVA is the product of the circuits maximum current and voltage rating. It is also known as Apparent Power.
    • kW is the unit of real power and kVA is a unit of apparent power (or real power plus re-active power). The power factor, unless it is defined and known, is therefore an approximate value (typically 0.8), and the kVA value will always be higher than the value for kW.
    • A kVA is 1,000 volt-amps. It’s what you get when you multiply the voltage (the force that moves electrons around a circuit) by the amps (electrical current).
  • Megavolt-Amperes (MVA):
    • MVA or megavolt-amperes is the unit used to measure the apparent power in a circuit. It’s a product of the voltage and current in a circuit.
    • 1 kVA is equivalent to 1,000 volts while the 1 MVA is equivalent to 1,000,000 volt-amperes.


  • Kilowatt (kW):
    • A kilowatt is simply a measure of how much power an electric appliance consumes—it’s 1,000 watts to be exact. You can quickly convert watts (W) to kilowatts (kW) by diving your wattage by 1,000: 1,000W 1,000 = 1 kW.
  • Megawatt (MW):
    • One megawatt equals one million watts or 1,000 kilowatts, roughly enough electricity for the instantaneous demand of 750 homes at once.
  • Gigawatt (GW):
    • A gigawatt (GW) is a unit of power, and it is equal to one billion watts.
    • According to the Department of Energy, generating one GW of power takes over three million solar panels or 310 utility-scale wind turbines
  • Terawatt (TW):
    • One terawatt is equal to 1,000,000,000,000 watts.
    • The main use of terawatts is found in the electric power industry.
    • According to the United States Energy Information Administration, America is one of the largest electricity consumers in the world using about 4,146.2 terawatt-hours.


  • ROCE:
    • The term return on capital employed (ROCE) refers to a financial ratio that can be used to assess a company’s profitability and capital efficiency. In other words, this ratio can help to understand how well a company is generating profits from its capital as it is put to use.
    • Financial ratio that is used to measure the profitability of a company and the efficiency with which it uses its capital. Put simply, it measures how good a business is at generating profits from capital.
    • ROCE = EBIT / Capital Employed (Total Equity + Total Debt).


  • EBITA:
    • Earnings before interest, taxes, and amortization (EBITA) is a measure of company profitability used by investors. It is helpful for comparing one company to another in the same line of business.
    • EBITA = Net income + Interest + Taxes + Amortization
  • EBITDA: 
    • Earnings before interest, taxes, depreciation, and amortization (EBITDA) is an alternate measure of profitability to net income. By including depreciation and amortization as well as taxes and debt payment costs, EBITDA attempts to represent the cash profit generated by the company’s operations.
    • EBITDA and EBITA are both measures of profitability. The difference is that EBITDA also excludes depreciation.
    • EBITDA is the more commonly used measure because it adds depreciation—the accounting practice of recording the reduced value of a company’s tangible assets over time—to the list of factors.
  • EV/EBITDA (Enterprise Multiple):
    • Enterprise multiple, also known as the EV-to-EBITDA multiple, is a ratio used to determine the value of a company.
    • It is computed by dividing enterprise value by EBITDA.
    • The enterprise multiple takes into account a company’s debt and cash levels in addition to its stock price and relates that value to the firm’s cash profitability.
    • Enterprise multiples can vary depending on the industry.
    • Higher enterprise multiples are expected in high-growth industries and lower multiples in industries with slow growth.