Energiekonzepte Deutschland is being prepared for sale – a valuation of more than 2 billion possible

Installation of photovoltaics on the roof

Energy concepts Germany currently sells around 2000 solar systems per month.

(Photo: dpa)

Frankfurt Energiekonzepte Deutschland (EKD), a provider of photovoltaic systems with integrated electricity storage for homeowners, is being prepared for a sale by its private equity owner Auctus, according to financial sources. With the boom in renewable energy, EKD is currently experiencing strong growth, so the timing is good. Other financial investors as well as suppliers or oil companies are considered possible buyers.

A decision on whether to start the sales process has not yet been made but could come in the next few weeks, people familiar with the matter said. So far, no bank has been mandated as a sales consultant. Should Auctus initially decide against a sale, an IPO is also possible in the future. Auctus declined to comment.

EKD expects an operating result (Ebitda) of around 150 million euros this year with sales of 700 to 800 million euros, as one of the insiders said. In 2024, revenues are expected to increase to 1.5 billion euros. In the case of a deal, EKD could be valued at more than two billion euros.

This would put EKD on a similar scale to the solar system rental company Enpal, which was valued at 2.25 billion euros in a financing round in January. According to financial circles, Enpal booked an EBITDA of eleven million in 2022 with a turnover of 400 million euros. Compared to Enpal, EKD is significantly more profitable and last year had a turnover of 270 million euros and an EBITDA of 60 million. The more profitable and growing a company, the higher the valuation when it is sold.

Auctus joined EKD in 2020 and holds just over 50 percent. At that time, the company, which was founded by Mathias Hammer in 2018, posted an Ebitda of just 6.5 million euros. Hammer had previously founded a battery storage company in 2009, which he sold ten years later to the Baden-Württemberg utility EnBW.

Own craftsmen employed

EKD employs 2,500 people, including 200 of its own craftsmen, who install the solar panels and storage systems in about half the cases. This means that the company is somewhat immune to the shortage of craftsmen that causes bottlenecks for other providers. EKD also has long-term contracts with manufacturers of inverters that are necessary for using photovoltaics in your own home. Supply bottlenecks for inverters had also led to difficulties in the market.

In order to finance its growth, EKD procured a three-digit million amount and additional credit lines from the medium-sized financier Pemberton in December. At the time, EKD also announced that it was entering the heat pump market.

The photovoltaic market, in which there are also competitors such as Eon, EnBW or the Shell subsidiary Sonnen, is currently growing strongly. According to figures from the Federal Network Agency, solar systems with a capacity of more than 600 megawatts were added each month in Germany in 2022. In order to achieve the expansion target of 215 gigawatts set for 2030, the pace would have to increase. Solar systems with a total output of 65 gigawatts are currently installed.

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Handelsblatt energy briefing

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