Highlander Partners has sold ZREW Transformatory to R&S International Holding, a portfolio company of CGS Management. Financial terms weren’t announced. ZREW, of Łódź, central Poland, makes medium-power transformers.
Warsaw, January 4, 2016 – Highlander Partners, a US, middle-market private equity firm today announced the sale of ZREW Transformatory, its portfolio company in Central Europe, to R&S International Holding, a private equity owned Swiss producer of high-end electrical products and systems for the power distribution and electrical infrastructure market. ZREW complements the portfolio of the Swiss Rauscher & Stoecklin and the Czech SERW, both subsidiaries of R&S International Holding. All together they will form part of a leading European industry group.
ZREW, a Highlander Partners investment since 2012, is a nationally recognized manufacturer of medium-power transformers with a more than 50 year track-record in Poland. Over the course of its 3-year investment, Highlander Partners worked closely with ZREW’s management to grow the company into an industry leader. Since Highlander Partners’ investment, the company has strengthened its position in the domestic market as the leader in the medium power transformers segment – up from the second place position – and has entered new markets outside of Poland. ZREW has doubled its production capacity and consistently increased revenue and profitability.
“Achieving outstanding success in this investment would not be possible without the exceptional contribution of the management team of ZREW, who reached their business objectives two years ahead of their original plans, while carrying out a profound transformation of the company. I am happy to say that together we have done a tremendous job positioning the company as the leader in its market and an attractive, mature business. ZREW is an outstanding company and I am sure R&S International will be very pleased with this acquisition”, said Dawid Walendowski of Highlander Partners.
“The acquisition of ZREW Transformatory is another milestone in our company’s strategy to become the leading global group in the niche market for components used in power distribution and electrical infrastructure. Apart from knowledge and a wide range of products, such as medium to high voltage disconnectors, as well as high quality medium voltage transformers, our portfolio now offers clients oil-immersed power transformers with power ratings from 100 kVA up to 120 MVA and voltage up to 145 kV. Furthermore, the group has strengthened its position in the growing Central and Eastern European countries”, said Giorgio Vannotti, President of the Board of Directors at R&S International Holding AG.
About ZREW Transformatory
ZREW’s core business is the manufacture, repair, upgrade and full diagnostic of oil-immersed power transformers with clients among distribution networks, unit transformers for power plants and combined heat and power plants with power ratings of up to 120 MVA and voltage of up to 145 kV, as well as special transformers, furnace transformers and transformers adapted to power rectifier units. The company is based in Łódź, central Poland. Video about ZREW Transformatory.
About R&S International
R&S International Holding is the parent company of Rauscher & Stoecklin, SERW and the newly acquired ZREW Transformatory. It is the portfolio company of a Swiss private equity fund managed by CGS Management. Rauscher & Stoecklin specializes in developing innovative products of the highest quality and specifications in its niche market. In addition to oil-immersed transformers for medium-voltage use, it also manufactures electrical engineering equipment, such as switchgears, high current plugs and sockets, switch and control systems. SERW is a leading provider of high-quality extra high voltage (EHV) and high voltage (HV) disconnectors and is located in Plzen, the Czech Republic.
About Highlander Partners
Highlander Partners is a $1 billion US private equity firm, specializing in long-term direct investments in midsize, innovative businesses from the manufacturing and service sectors, in North America and Central Europe. To date, Highlander Partners has made five platform investments in Poland and ZREW is the firm’s first exit in Central Europe.
About CGS Management
The CGS private equity funds invest in European, technology-based, small and midsize industrial companies. Using the industrial experience of its partners, CGS has been investing into companies throughout Europe, to build up internationally recognized companies.