Advent International acquires RWE Solutions Group from RWE

18.05.2006

Global private equity group, Advent International, today signed an agreement with RWE Energy to acquire RWE Solutions Group, comprising SAG, NUKEM, RWE Industrie-Lösungen, RWE Space Solar Power and Lahmeyer International. These companies collectively employ c. 9,500 staff and generated net sales of approximately Euro 1.7 billion in 2005.

The transaction is subject to the routine approval especially of the competition authorities and supervisory boards. Financial details of the acquisition were not disclosed.

The two largest companies in terms of sales within the portfolio are SAG and NUKEM. SAG is a leading provider of energy-related infrastructure services to utilities. Headquartered in Langen, the company employs c. 8,000 staff with sales amounting to Euro 1 billion in 2005. SAG comprises service companies focussed on low-/medium-voltage and project companies that concentrate on high voltage transmission lines and substations. As well as retaining considerable market share in Germany, SAG also holds leading market positions in several other European countries.

NUKEM is an international leader in nuclear fuel cycle and decommissioning services. The company is well established in the global nuclear services industry and enjoys an international reputation. It holds leading positions in the UK, German and Eastern European decommissioning markets and is the world's largest independent uranium trader. It is headquartered in Alzenau.

Advent will focus on the individual strengths of the newly acquired businesses and plans to develop their independent positions. SAG is set to benefit from the increasing investment in energy infrastructure on the part of utilities. NUKEM will also be able to capitalise on increasing global demand for the decommissioning of nuclear facilities. Increased decommissioning demand is particularly expected in Central and Eastern Europe, and the UK where the decommissioning market is soon to be deregulated. With nearly two decades of experience in the industrial sector and a fifteen-year presence in Germany, Advent is well positioned to raise the potential of the newly acquired companies.

Optimistic about the opportunities afforded by Advent's investment, Michael Stadler, Chairman of the SAG Holding GmbH Management Board, commented:

"This newly gained independence gives us the chance to penetrate deeper into markets which were hitherto underdeveloped from a turnover perspective. That, together with the discernible increase in investment in the energy infrastructure sector, pre-empt excellent prospects for healthy growth."

Dr. Erwin Wehner, Chairman of the management board of NUKEM GmbH, commented:

"Advent's way into our company will strengthen our leading position in the nuclear fuel cycle market and will enable us to continue our successful activities in the international decommissioning and waste treatment markets."

Ralf Huep, Managing Director at Advent International, commented:

"The diversity and international profile of the RWE Solutions portfolio is characteristic of the type of investment which Advent is so strongly positioned to support. It is in sector, leverages our international footprint and requires a high level of Advent involvement and value-add support. There are some exciting growth opportunities in the energy space, which the portfolio is particularly well-placed to respond to."

Ends

About Advent International:

Advent International is one of the world's leading private equity firms, with Euro 4.8 billion ($6 billion) in cumulative capital raised and offices in 14 countries across Western and Central Europe, North America, Latin America and Asia Pacific. Since its founding in 1984, Advent has invested in over 500 companies and has helped businesses raise Euro 8 billion ($10 billion) through public equity and debt offerings. These include 130 IPOs on major stock exchanges worldwide. Advent is committed to helping management teams build successful businesses by applying its industry expertise, international resources and local market knowledge.

Advent has a proven track record in the German market having led eight transactions in the last two years. Recent investments by Advent's German team include the acquisition of Casa Reha, a leading German private nursing home group (Sept 2005); Herlitz, Germany's leading manufacturer and supplier of stationery and papeterie (e.g. greeting cards and gift-wrapping-paper) products (Aug 2005); Synventive Molding Solutions, a global designer and manufacturer of hot runner systems (Aug 2005); HT Troplast (Dec 2004), a leading global diversified plastics manufacturer; and Sportfive (June 2004), Europe's leading sports rights agency and the world leader in football marketing and broadcasting rights. Recent exits include the sale of speciality pharmaceuticals manufacturer Viatris to Swedish pharmaceuticals group, Meda (Sept 2005); and the sale of industrial electronics group Moeller in July to Doughty Hanson following a successful Euro 1.1 billion turnaround.

In April 2006, the news provider Financial News honoured Advent's work in Germany and elected Advent as "German Private Equity Firm of the Year".

During 2005, Advent closed three buyout funds (Global, Latin America and Central & Eastern Europe), raising over $4 billion. They also invested in 14 companies in 9 countries with a combined enterprise value of over $3 billion, and realised over thirty full and partial exits.


Point of contact

Bea Heinze
Communications Manager
T: +49 6023 91 1549
F: +49 6023 91 1188
E: bea.heinze@
nukemtechnologies.de