CVC podpisało przedwstępną umowę sprzedaży PKP Energetyka

https://www.cvc.com/

January 3, 2023

CVC Capital Partners Fund VI (“CVC”) has signed a preliminary agreement for the sale of PKP Energetyka, an energy distributor for the Polish railway sector and provider of traction network maintenance services, to PGE, the state-controlled- public power company and the largest power producing company in Poland for an EV of PLN 5,944.5 million. The transaction is subject to the standard regulatory approvals and depends on the conclusion of the legal dispute regarding the privatization of PKP Energetyka and obtaining consents from entities providing financing.

PKP Energetyka is one of the largest energy companies in Poland, responsible for the distribution of over 4 TWh of electricity annually, which is 2.9% of all energy in Poland. The company manages and develops critical infrastructure for Polish rail transport has and maintains 21.5 thousand km of power lines and owns over 800 substations, employing over 4,000 people.

During CVC's ownership over the last seven years PKP Energetyka has been consistently implementing cutting-edge technology to improve the quality, safety and efficiency of its operations. The company operates a Workforce Management system, advanced data analytics systems, artificial intelligence-based algorithms to support the safety of the distribution network and rail traffic, as well as mobile and virtual training solutions. PKP Energetyka is highly technologically advanced, as exemplified by Europe's largest traction energy storage facility in Garbce near Wroclaw, further supported by innovative hydrogen technology developed jointly with Polish scientists. The company's transformation would not have been possible without the commitment of its employees, which is currently at almost 70% (with the Polish average at 48%). This is confirmed by receiving the Top Employer certificate four years in a row (2019-2022).

Quotes
We have carried out a complex transformation of the company over the past seven years. Through c.PLN 4 billion capex investments and value-creation programs, we have transitioned it from an analogue world to a digital one.

Krzysztof Krawczyk
Partner, CVC Capital Partners
Krzysztof Krawczyk, Partner at CVC Capital Partners, commented: “We have carried out a complex transformation of the company over the past seven years. Through c.PLN 4 billion capex investments and value-creation programs, we have transitioned it from an analog world to a digital one. This has allowed us to improve operational parameters, such as reducing the network outages from 331 in 2015 to 14 in 2021 and improving SAIDI power outage index by more than 3 times.

István Szőke, Managing Partner at CVC Capital Partners, added: “We are handing over the company in an excellent condition - today PKP Energetyka is fully ready to be the backbone of the transformation of the railroad power industry, crucial for the development of the entire sector, and has huge potential for further long-term development.”

Wojciech Orzech, President of the Management Board of PKP Energetyka, said: “The recent years of PKP Energetyka's continuous growth are no coincidence. This is the result of implementing a carefully planned company transformation process. It would not have been possible without the huge commitment of the entire team, which believed in the vision of development and joined its co-creation and implementation from the very beginning. Quality, safety, commitment, efficiency - these four values have accompanied us from the beginning of the transformation and have been the foundation for the development of PKP Energetyka.”

The digital transformation allows the company, and the entire sector, to realize the strategic Green Railway® program, which aims to change the sector's energy mix to 85% clean energy from renewable sources in 2030, and ultimately to 100%.