- Competitive advantages to implement a Europe-wide O&M business
- Economies of scale and margin improvement through enlarged value chain
- Combined growth opportunities to attract third party clients
- Technical know-how-transfer as well as project development experience
- In-sourcing of existing service contracts and sub-contracting
Hamburg/Parma, August 22, 2019 - Encavis AG (ISIN: DE0006095003, Prime Standard), the Hamburg-based solar and wind park operator listed on the SDAX, acquired a minority stake of 30% in its long-term Operation and Management (O&M) partner, Stern Energy SpA, in order to strengthen its technical solar services business.
The investment in Stern is an important strategic step forward for Encavis to build-up a significant Europe-wide presence in the technical solar services business. The competitive advantage in serving all segments of the value chain will strengthen the already existing O&M business platform. Encavis counts on several years of successful collaboration with Stern who is already responsible for the technical operations of a major part of the Italian and UK portfolio of Encavis as well as parts of the Dutch portfolio. Encavis and Stern will strive together to build further value on this well-functioning partnership by extending joint business activities in O&M solar services across the entire Encavis portfolio.
Encavis AG has significantly expanded its portfolio over the past years. It comprises a total of 175 solar parks and 69 wind parks in ten European countries with a total generation capacity of close to two gigawatts (2 GW). The choice to appoint Stern as preferred O&M contractor in all existing solar plants, reduces costs and offers additional economies of scope in Encavis" technical services business.
"The partnership with and shareholding in Stern is an important corner stone in a strategy to actively influence margin distribution across the value chain. Furthermore, we will benefit from Stern"s expertise in project development giving us early access to new solar projects designed for attractive PPA markets", commented Dr. Dierk Paskert, CEO of Encavis AG, the future perspectives.
Revenue of the combined O&M business and the O&M additional services business of Stern grew in the past five years (2012-2017) with a CAGR of more than 35%. A further increase of this growth is expected for 2019 with estimated revenue of approx. EUR 12.5 million.
"We are excited to strengthen the strategic partnership with Encavis which allows Stern to grow internationally with the aim to become leader in the European O&M market", underlined Ernesto Magnani, CEO of Stern Energy SpA, the tightened partnership.
About Stern Energy SpA:
Stern Energy SpA is a leading solar O&M provider with focus to high quality services throughout Europe. Stern has built its reputation over ten years of activity providing a wide range of services including specialized analysis and measurements. Stern is currently servicing over 550 MW on recurrent basis and is engaged in several revamping and repowering activities.