Case Studies


ENGIE’s Acquisition of OTTO

TRANSACTION OVERVIEW

  • On December 19, 2018, ENGIE Deutschland GmbH, part of the ENGIE Group (EPA:ENGI), announced the acquisition of OTTO Luft- und Klimatechnik GmbH & Co. KG (“OTTO”) for an undisclosed amount
  • The acquisition fits with ENGIE’s strategy to strengthen its position in its Building Services segment and reinforces its design, planning and execution capabilities

ENGIE OVERVIEW

  • ENGIE is a global energy and services group, focused on three core activities: low-carbon power generation, mainly based on natural gas and renewable energy; global networks and customer solutions
  • ENGIE has operations in 70+ countries, employing 150,000+ people and generating a turnover of €65bn in 2017
  • In Germany, ENGIE has 4,000 employees and a turnover of €3bn in 2017. ENGIE Germany is active along the entire energy value chain, providing engineering and consulting services for complex infrastructure projects in the areas of energy, water, hydropower, construction, and transportation

OTTO OVERVIEW

  • Based in Bad Berleburg, OTTO is one of the most renowned specialist companies for ventilation and air-conditioning system contracting and services
  • OTTO services clients from industry, trade, commerce, and the public sector, furnishing shopping centers, hospitals, office buildings, industrial production lines, and pharmaceutical laboratories with ventilation and air-conditioning systems and technical solutions
  • OTTO has an annual turnover of approximately €120mm and employs 700+ people throughout Germany

GREENTECH’S ROLE

  • Greentech served as the exclusive financial advisor to ENGIE and was closely involved in all aspects of the transaction, including assessment of strategic fit, valuation, due diligence, and negotiations
  • Greentech’s expert industry knowledge and familiarity with both ENGIE and OTTO supported ENGIE in its assessment of the strategic rationale for an acquisition and in the identification of potential areas of synergy
  • Greentech’s extensive experience in providing buy-side advice to corporate clients in private equity sales processes was instrumental in allowing ENGIE to navigate an accelerated process timeline and be successful in a highly competitive process

WHAT THE TRANSACTION MEANS
FOR THE ENERGY STORAGE SECTOR

  • As building systems become more digital and building performance regulations become more complex, the importance of technical design and installation expertise will increase, providing opportunities for companies like OTTO
  • This acquisition is an example of how utilities continue to reorient themselves around the customer, including by looking for opportunities to deliver customer-facing efficiency services and digital solutions for the built environment

Other Case Studies