(Reuters) – Buyout group EQT is injecting fresh cash into German utility services provider SAG as the company breached its debt covenants after a difficult 2014, two sources familiar with the matter said.
EQT, which bought SAG in 2008, is pumping 30 million euros ($35 million) into the group, which has 420 million euros in senior and mezzanine debt and an additional 350 million in pension liabilities, the sources said.
SAG’s earnings before interest, taxes, depreciation, and amortization fell to 70 million euros in 2014 from 81 million a year earlier after it ran into trouble with some offshore projects.
It also saw its French business suffer from the weak economy and faced stiff competition in its German services business.
SAG, formerly the energy related activities of RWE Solutions , constructs and runs energy grids, employs roughly 8,000 staff and has annual sales of about 1.2 billion euros.
EQT declined to comment.