Information on the Target

Axicom HV AG, headquartered in Wohlen, Switzerland, is a distinguished global manufacturer specializing in advanced solutions for high-voltage power transmission. With over 60 years of industry experience, Axicom has established itself as a reliable partner for a plethora of international blue-chip customers. The company's strong engineering capabilities, combined with a commitment to quality, enables it to deliver cutting-edge solutions for complex power transmission applications.

Axicom's extensive product portfolio includes essential high-voltage components and hollow composite insulators, catering to various applications such as air/gas insulated switchgears, dead tank breakers, bushings, and outdoor cable terminations. With approximately 190 employees and a robust global salesforce, Axicom is well-positioned to tackle the challenges posed by the growing demand for renewable energy infrastructure.

Industry Overview in Switzerland

The transmission and distribution sector in Switzerland is experiencing significant growth, propelled by increased investments in renewable energy and the necessity to upgrade aging electricity infrastructure. As governments bolster their commitments to sustainable energy sources, there is an ever-growing demand for robust and efficient power transmission systems. This shift aligns perfectly with the global move toward dercarbonisation and the adoption of renewable technologies.

Switzerland's unique geographical position and advanced electrical grid make it a strategic hub for power transmission in Europe. The country's commitment to maintaining a reliable energy network while transitioning to cleaner energy sources places it at the forefront of the energy sector. Furthermore, as Transmission System Operators (TSOs) adopt multi-billion-dollar capital expenditure programmes, the industry is set for transformative growth.

In response to increasing electricity demands and technological advancements, Switzerland is transitioning to smart grid technologies that enhance grid efficiency and reliability. This evolution of the grid is critical in facilitating the integration of renewable energy sources and optimizing electricity management, ultimately benefiting both consumers and producers alike.

The energy landscape is also witnessing a wave of innovation, with emerging technologies enhancing the reliability and efficiency of power distribution. As high-voltage solutions become increasingly paramount, companies like Axicom are poised to capitalize on these trends with their advanced engineering and manufacturing capabilities.

The Rationale Behind the Deal

The acquisition of Axicom by Trilantic Europe is strategically aligned with the growing focus on energy transition initiatives globally. This investment will empower Axicom to leverage secular tailwinds in the transmission and distribution sector, driven by escalating renewable energy installations, rising electricity demands, and the pressing need to refurbish aging electrical infrastructures.

By integrating Trilantic Europe’s industry knowledge and capital, Axicom will have the necessary resources to enhance its operational capabilities and expand its market share in the evolving landscape of high-voltage power solutions. The financing structure post-transaction will allow for greater flexibility and sustained growth initiatives.

Information About the Investor

Trilantic Europe is a prominent mid-market private equity firm that focuses on investment opportunities across Europe with a keen emphasis on energy transition strategies. With a dedicated team of over 30 professionals and a network of 15 operating partners and senior advisors, Trilantic Europe has gained significant expertise in identifying and capitalizing on sustainable investment opportunities.

Since its inception in 2004, Trilantic Europe has strategically invested over €2.7 billion across 29 companies. The acquisition of Axicom marks their third investment through the Energy Transition Investments fund, underscoring their commitment to advancing enterprises with a clear focus on sustainable energy and infrastructure solutions.

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The decision by Trilantic Europe to acquire Axicom is noteworthy, as it aligns with overarching industry trends favoring sustainable energy solutions and high-voltage infrastructure developments. As investors increasingly recognize the pivotal role of reliable power transmission in supporting renewable energy sources, Axicom stands out as a prime candidate with strong market positioning and robust growth prospects.

Axicom's long-standing relationships with blue-chip customers and its reputation for high-quality products further bolster its appeal as a strategic investment. With the increasing pressure on electrical infrastructure to evolve alongside renewable commitments, Axicom is uniquely positioned to benefit from these market dynamics.

Moreover, the partnership with Trilantic Europe not only provides Axicom with a solid capital foundation but also opens avenues for leveraging an extensive industry network to drive future growth. This synergistic relationship can enhance Axicom's operational efficiency and innovation in product offerings, solidifying its position as a leader in the high-voltage sector.

Overall, this deal represents a significant opportunity for both parties, aligning Axicom's objectives with Trilantic Europe's investment strategy in the energy transition paradigm, making it a potentially lucrative venture as the energy sector continues to evolve.

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