Information on the Target

The R&S International Holding AG, now known as R&S Group Holding AG, is a prominent player in the field of electrical infrastructure products across key markets in Europe and the Middle East. Established through the acquisition of Swiss-based Rauscher & Stoecklin AG, the company has since expanded its operations by strategically acquiring firms in Italy and Poland. Today, R&S Group boasts over 700 employees, six production facilities, and a legacy of more than 100 years in providing innovative transformer solutions.

R&S Group has cultivated a robust global partnership network and established operational sites that enable efficient service delivery and customer support. The company prides itself on its innovative capabilities and flexibility, allowing it to develop modern products that meet the complex demands of today's energy sector.

Industry Overview in Switzerland

The electrical infrastructure industry in Switzerland has seen consistent growth, driven by the increasing demand for sustainable energy solutions and innovations in power generation and transmission. With a strong focus on technological advancements and quality, the sector remains competitive, attracting both domestic and international investments.

Switzerland's strategic location in Europe provides a unique advantage for companies within the electrical infrastructure market to access broader EU markets. The drive towards renewable energy and improvements in energy efficiency are further catalyzing investments in this sector.

Government policies supporting green energy initiatives and infrastructure modernization have propelled companies within this industry to prioritize technological diversification and scalable solutions. As a result, organizations are investing heavily in research and development to ensure they remain at the forefront of industry advancements.

Overall, the Swiss electrical infrastructure market presents a wealth of opportunities, particularly for companies equipped with innovative products and services tailored to evolving market needs.

The Rationale Behind the Deal

The recent listing of R&S Group on the SIX Swiss Exchange is a significant step in the firm’s strategy to elevate its operational capacity and market presence. By leveraging the capital acquired through this public listing, the company aims to accelerate its growth trajectory and take full advantage of emerging market opportunities.

This strategic move not only enhances R&S Group's visibility but also provides its investors with access to international capital markets, empowering the company to expand its innovative product offerings and market share.

Information About the Investor

CGS Management AG is a well-established and independent investment firm based in Pfäffikon SZ, Switzerland. Since its inception in 1999, CGS has specialized in developing mid-sized industrial companies into global leaders through strategic investments and acquisitions.

With a proven track record, CGS focuses primarily on the DACH region, leveraging its industry expertise to foster international growth for portfolio companies while ensuring sustainable profitability and job creation.

View of Dealert

This transaction signifies a remarkable advancement not only for CGS and its investors but also for the Swiss market, heralding the first successful listing of a SPAC-acquired company. The strategic execution of the Buy & Build strategy appears to have positioned R&S Group as a market leader in the transformer industry, which could further benefit from growing global demands for electrical energy solutions.

The potential for scalability and innovation within R&S Group remains high, especially in response to the increasing emphasis on renewable energy and efficient electrical infrastructure. The backing of CGS ensures that R&S Group is equipped with the resources needed to capitalize on this growth.

Investors are likely to benefit significantly from the value creation initiated through this deal, alongside the prospect of continued growth and expansion. The minority stake retained by CGS will further align its interests with those of the broader investor community, supporting ongoing value appreciation.

Overall, this investment presents a favorable outlook for stakeholders, underscoring the strategic foresight of CGS in navigating market trends and positioning R&S Group for sustained success.

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