Information on the Target

Founded in 2011, Cold Pad is an innovative deep tech company based in France, specializing in non-invasive fastening technologies that serve as alternatives to traditional welding and drilling methods. With a strong portfolio of 30 patents, Cold Pad's adhesive fixation technology is the only one approved for use in nuclear power plants. The company has successfully installed thousands of cold and non-invasive fixes in extreme environments, including maritime and oil and gas sectors. Its solutions are particularly well-suited for wind turbine construction and civil engineering applications.

Cold Pad's patented deep tech technology provides a sustainable, innovative alternative with numerous advantages over traditional methods, being recognized for its ease and speed of installation. It enables safe and prompt anchoring without invasive or hot works, significantly reducing production downtime and improving safety standards. This technology can notably extend the lifespan of infrastructure in heavily carbon-intensive sectors such as civil engineering and energy.

Industry Overview in France

The energy and construction industries in France are currently undergoing a significant transformation, driven by the need for sustainable and innovative solutions. With the French government aiming to reduce carbon emissions and enhance energy efficiency, there is a growing focus on wind energy and nuclear power—two critical components of France's energy strategy. The utilization of technologies like those developed by Cold Pad will play a vital role in achieving these objectives.

In the wind energy sector, France is positioning itself as a leader in Europe, with numerous onshore and offshore projects in development. However, challenges such as resource management and reduced environmental impact remain prevalent. Cold Pad’s solutions offer a strategic advantage in minimizing the use of rare earth materials and promoting a reduction of up to 100 tons of steel per wind turbine, aligning with the commitments made by energy producers towards sustainability.

The nuclear industry in France, known for its longstanding expertise and infrastructure, is also actively seeking innovations that can support its revival and modernization. Cold Pad's technology presents a complementary approach to repairing and maintaining critical nuclear facilities without the need for invasive techniques, thus reducing operational risks while enhancing safety and efficiency.

Furthermore, the construction industry is also under pressure to meet sustainability goals. Cold Pad’s non-invasive technology contributes to the decarbonization of construction by replacing traditional fastening methods, further supporting the French government’s efforts in industrial and economic recovery.

The Rationale Behind the Deal

This recent funding round for Cold Pad came as a strategic move to welcome new reference shareholders and accelerate its next phase of growth. The funds will support Cold Pad's ambitions to extend its market reach and enhance its product offerings in the rapidly evolving energy sector, particularly in wind energy and nuclear power.

By securing investments from prominent investors such as NCI, LBO France, and others, Cold Pad strengthens its position to leverage synergies that will drive innovation and market expansion. These investors bring valuable expertise and networks that will facilitate the execution of Cold Pad’s growth strategy and enhance its operational capabilities.

Information About the Investor

NCI is a multi-regional private equity player that invests in innovation-driven projects across various sectors. With a management portfolio of €330 million and a strong growth record, NCI is renowned for its commitment to supporting sustainable initiatives and projects that align with economic development goals. Their latest fund, NCITY, focuses on technologies related to the city of tomorrow, emphasizing building, energy, mobility, and smart city solutions, which complements Cold Pad’s objectives.

LBO France is a pioneer in private equity in France and operates as a multi-specialist investment platform. With significant expertise across various investment strategies, including Private Equity and Real Estate, LBO France focuses on supporting innovative companies in their growth trajectory. Their NewStone fund is concentrated on impactful investments in the real estate and construction sectors, emphasizing sustainability and decarbonization, making Cold Pad an apt match for their investment philosophy.

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From an investment perspective, the deal presents a compelling case for growth given Cold Pad’s innovative technology and its alignment with the pressing need for sustainable solutions. The entrance of high-caliber investors like NCI and LBO France bolsters the company's potential by providing not only capital but also strategic support and industry expertise. This convergence of resources is vital for Cold Pad as it looks to scale its operations and capitalize on the flourishing markets of wind energy and nuclear power.

Furthermore, with the increasing regulatory pressure towards decarbonization and sustainability in France, Cold Pad is well-positioned to take advantage of these trends. Their unique non-invasive bonding solutions will likely see growing demand, particularly as industries strive to meet new governmental standards and embrace technological advancements.

However, investors should consider the broader market dynamics and potential competition within the fast-evolving energy sector. While the opportunity exists, it will be crucial for Cold Pad to maintain its innovative edge and effectively navigate the challenges associated with rapid market growth and technological adoption.

In conclusion, Cold Pad's approach to revolutionizing fastening technologies combined with the strategic backing from respected investors makes it a promising investment. The alignment between Cold Pad's goals and the sustainable development initiatives in France provides a strong foundation for future growth, making this deal a potentially lucrative opportunity for involved stakeholders.

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