Jupiter Group & BACH Composite Industry merge to create global wind industry leader

The combined company will focus on innovations that reduce wind power’s Levelized Cost of Energy (LCoE) and drive the industry forward.

Jupiter Group A/S and BACH Composite Industry (BC Group A/S) announced today that the companies have entered into a definitive merger agreement realized under the leadership of Verdane Capital Advisors (Verdane Capital VIII K/S), who acquired Jupiter Group in May 2016. The combined company will be the largest supplier of nacelle and spinner covers in the world.

The combination brings together two world-leading Danish wind industry specialists with significant engineering capabilities and a complementary global footprint. Based in Thy in Jutland, BACH Composite Industry has built strong partnerships with leading OEMs from its production sites in Denmark, Spain, the USA, China and Lithuania. Jupiter is well known for engineering excellence, serving leading OEMs from its production sites in the USA, China, Poland and Denmark. Upon closing, the combined company will be headquartered in Køge, just outside Copenhagen, and have more than 1,200 employees. Integration is expected to start in 2017.

Mr. Jens Kristensen, CEO & CCO of Jupiter Group, who will lead the combined company, commented:

We are excited about the opportunities this merger create. Not only will it greatly enhance our strength and depth of service capabilities across the globe, but it will allow the combined company to assume its responsibility as a leading and trusted partner that can take ownership of the supplier agenda. Together we will be in an even better position to offer direct benefits to new and existing customers, like helping them lower their LCoE. For the industry, this is an important and necessary step, and we are proud that our owners, Verdane Capital VIII and BWB Partners, have made it happen.

Mr. Geert Winther Skovsgaard, CEO of BACH Composite Industry for nearly 20 years, who has been instrumental in building BACH Composite Industry into a world-leading wind industry supplier, will resign as CEO upon the closing of the merger. He will retain a minority stake in the new company. Mr. Skovsgaard commented:

I am proud to be able to facilitate this merger for numerous reasons: the synergies are obvious, our customers will benefit from the larger scale, the timing is perfect as the industry is consolidating across the value chain, and the combination of these twin businesses makes really good sense from an industry perspective. With complementing production units across the globe, BACH will contribute unique competences and skills to the combined entity – handing over this solid and well-run business is an honor.

As the wind industry has evolved to become a mainstream energy source on par with fossil fuels and established renewable energies, it is now paramount that the entire value chain focuses on achieving a low LCoE through innovation and scale. Together, Jupiter Group and BACH Composite Industry’s combined resources will be concentrated on developing the efficiencies and advancements necessary to achieve this and drive the industry forward.

Mr. Arne Handeland of Verdane Capital Advisors commented:

We are delighted to be able to bring together these two world-leading Danish players to create a supplier to the wind industry that can meet the needs of a changing industry. We strongly believe that with its enhanced scale and resources, the combined company will be able to help the industry move its agenda forward, which ultimately means making wind a more efficient, and thus attractive, energy source. It’s a development that we are proud to contribute to.

Mr. Jesper Wadum Nielsen of BWB Partners, said:

Over the past two years, we’ve been working very closely with Geert Skovsgaard and his team at BACH Composite Industry to drive the process optimization and global integration required to meet the demands of a maturing wind industry. I am very pleased with the results that we have achieved and the team’s ability to deliver in a short period of time. The merger with Jupiter Group is the natural next step on this journey to augment the level of professionalism across the wind value chain and ultimately enable the industry to reduce it’s LCoE. We are confident that the combined team has what the industry needs going forward. This is also why we are retaining a minority stake in the business.

Strategic rationale for the merger:

• An enhanced global footprint: With factories in Denmark, Poland, Lithuania, Spain, China and the USA, the merged company will be well-positioned to service and reduce delivery times and cost to customers in key locations.
• A shared focus on innovation that is enhanced by scale: By merging the engineering departments of the two major nacelle suppliers in the world, the combined company will be able to focus its technology investments and partner with customers to deliver innovations that reduce wind power’s LCoE.
• Engaged, global talent: As the leading supplier to the wind industry, the new company will be able to attract and retain talents who are passionate about wind and motivated by the opportunity to increase its reach.
• Stronger capabilities and resources: With Verdane Capital VIII as the majority owner, the combined company can focus on expanding its already strong expertise in composites for the wind industry, delivering innovations that bring efficiency to all.
• Elevated strategic partnerships: The new entity will deploy its enhanced engineering capability and technology prowess to partner with leading institutions that share its goal of lowering wind power’s LCoE.

About Jupiter Group A/S

Jupiter Group is the global market leader of developing and supplying high-quality composite nacelle and spinner covers to the wind turbine industry. With more than 20,000 nacelle covers in the field, we have a long track record of consistently supplying the largest OEMs of the wind industry. Our highly-skilled engineers are accustomed to complying with the demanding standards set by OEMs on parameters such as structural strength, weight reduction, fire resistance, computer simulation, quality control and safety.

About BACH Composite Industry (BC Group A/S)

Bach Composite Industry is one of the largest manufacturers of nacelle covers for wind turbines in the world with an annual production of more than 100.000 vacuum infused nacelle and spinner cover parts. Building on 30 years of experience, a global manufacturing footprint, a recognized high-end quality management paradigm, and a state-of-the art Technology and Innovation Center, Bach is the unique partner for developing, producing and supplying best-in-class solutions for high volume composite production, catering to the wind turbine industry’s requirements for continuous improvement of quality, delivery performance, innovation and ultimately competitive prices.

About Verdane Capital Advisors

Verdane private equity funds invest in companies with strong growth potential that are active in the advanced industrial and energy space, consumer Internet, and software sectors. The funds have the flexibility to acquire either a complete portfolio of unlisted assets, parts of a portfolio or a single company. Verdane Capital Advisors, the exclusive investment advisor to Verdane funds, has 25 employees in Oslo, Stockholm and Helsinki.

About BWB Partners

BWB Partners is an independent Danish investment firm investing in small and medium-size companies with strong growth potential. The BWB Partners funds own 12 industrial and service-sector companies. BWB Partners focuses on creating value in their portfolio by promoting organic growth, undertaking strategic acquisitions, developing the management structure and pursuing operational improvements in close collaboration with management teams and co-investors.

Contacts

Jesper Wadum Nielsen, Partner
BWB Partners
jwn@bwbp.dk
+45 2020 6346

Arne Handeland, Partner
Verdane Capital Advisors
arne.handeland@verdanecapital.com
+47 2413 7000

Jens Kristensen, CEO
Jupiter Group A/S
jek@jupitergroup.com
+45 4095 9506