Kyte Powertech (“Kyte Powertech” or “the Company”), an Ireland-based leading manufacturer of distribution transformers, backed by MML Growth Capital Partners Ireland (“MML”), has entered into an agreement to be acquired by R&S Group, a leading provider of electrical infrastructure components in focus markets in Europe and the Middle East.

The transaction marks the successful exit of MML following its significant investment, alongside current management, in the Company during 2020. Kyte Powertech will continue to operate as normal following this transaction, while its senior management team, led by Stephanie Leonard, will remain in place, having reinvested in the business.

Kyte Powertech, headquartered in Cavan, has strong market positions in Ireland, the United Kingdom, Belgium and the Netherlands. The Company specialises in the manufacture of distribution transformers for distribution networks and a diverse range of industrial applications including renewables. The Company employs c.490 people, with revenues of €165m in 2024 (year-end March 2024).

R&S Group, with operating headquarters in Sissach, Switzerland, has six manufacturing facilities in Switzerland, Italy, Poland, and the Middle East, and serves its domestic and European export markets with small and medium power and distribution transformers in the utility, infrastructure and industrial sectors. Listed on SIX Swiss Exchange, R&S Group has a global workforce of over 600 people and a market capitalisation around CHF400m.

Stephanie Leonard, CEO of Kyte Powertech, said:

“This acquisition could not have been better timed. It will allow us to build on the momentum we have generated over recent years and enable us to invest in the considerable market opportunities in Europe and beyond. Our addressable market is growing significantly thanks to a surge in electricity usage, transport electrification and data consumption. The drive to net zero all over Europe is also stimulating higher growth. We have a strong reputation in the market, enjoy long standing customer relationships and, importantly, have end-to-end manufacturing and testing facilities in Cavan with capacity to expand. We are grateful to MML for their support, having backed us in 2020 to stabilise the business to grow it. They leave Kyte Powertech in a better place and now R&S Group will enable the business to develop and grow further. I’d equally like to extend my thanks to our suppliers, loyal customers and particularly the nearly 500 Kyte Powertech employees whose hard work and dedication has made this possible.”

Markus Laesser, CEO of R&S Group, said:

“M&A is a strategic pillar of the R&S Group roadmap. Combining with a leader in additional markets which R&S Group is currently not serving, will strengthen the combined group and management capabilities. We are gaining in our product offering and technical expertise.”

Rory Quirke, Partner and Co-Head of Investments at MML, said:

“We are pleased to announce the successful exit of our investment in Kyte Powertech, marking a significant milestone in the company’s development. Our partnership with Kyte Powertech demonstrates what we strive to achieve at MML, collaborative relationships that drive mutual success. We are grateful for the dedication and hard work of the Kyte Powertech team, which has been instrumental in achieving remarkable growth. This exit underscores our commitment to supporting companies in reaching their full potential.”