18 November 2022

Acquisition of Groendus by APG and Omers nominated for Best MidCap deal by M&A Community

Voltiq was buy-side advisor on this unique deal running for the M&A Award 2022

Acquisition of Groendus by APG and Omers nominated for Best MidCap deal by M&A Community

In May 2022, NPM Capital reached agreement with a consortium consisting of APG Infra and OMERS Infrastructure on the sale of Groendus. The deal was closed in November 2022. Groendus is one of the larger sustainable energy transition platforms in the Netherlands, and was established in 2021 through the merger of six companies in the rooftop solar, smart metering and energy efficiency and management services spaces.Through this transaction, long term pension investors APG and OMERS are proactively and locally investing in the Dutch energy transition. 

Why?should?this?deal win?the?Award?for?Best Mid-Cap Deal 2022??

This transaction (i) is unique as pension investors are proactively investing from their infrastructure funds to build a large, driving platform in the energy transition in the Netherlands, (ii) is relevant in a societal/environmental context as it sits at the heart of the energy transition and the impact of the ongoing energy crisis, (iii) sets up Groendus for the future with a long-term focused and financially strong shareholder base, and (iv) marks an attractive exit for NPM Capital.  

Also, the negotiations between parties took place in the context of highly volatile energy prices directly impacting the profitability of Groendus’ solar portfolio, as well as general volatile market conditions. This resulted in intensive discussions and negotiations between parties in the triangle APG – OMERS – NPM/Groendus, in order to bridge different valuation expectations and realise the deal certainty that NPM required. Also, APG and OMERS have formed a 50/50 JV for this transaction, which added additional complexity to the transaction and the negotiation process. In addition, a direct investment in a truly operational, entrepreneurial and fast growing company like Groendus is, is not a typical investment characteristic for the infrastructure teams of APG and Omers (who are more typically engaged in large, minority investment in a portfolio of core infra assets).

You can read more about this unique deal and why it is nominated in its pitch on the website of M&A Community. The final scores are determined 75% by the jury and 25% by public votes. Voting is possible until 5 December 2022, fingers crossed.....

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