Pitch Best MidCap Deal 2021: Legrand – Ecotap
Bekijk alle pitches & stem direct
Name of the deal: Legrand acquires Ecotap
Date closed: 30-07-2021
Published value: 100 – 250 Million (€)
Buyer(s): Legrand SE
Target: Ecotap
Seller: Ecotap shareholders
Involved firms and advisors buy side:
Loyens & Loeff (Legal Advisory Corporate/M&A and Tax Advisory), EY (Financial Due Diligence and Tax Advisory)
Involved firms and advisors target:
IMPROVED Corporate Finance, SpringFinance (M&A advisory), Rutgers & Posch (Legal Advisory Corporate/M&A), DNV (consultancy)
Involved firms and advisors sellside:
n/a
Pitch
Brief description deal / Deal outline
The objective of the transaction was to find the most suitable partner/owner for Ecotap to further accelerate its international growth. With Legrand, the global specialist in electrical and digital building infrastructures, having an extensive global reach, expertise and network, both commercially and product-wise, Ecotap can ensure its reliable charging solutions can be rolled out at significant scale and pace throughout Europe and the rest of the world, to meet the rapidly accelerating demand and the necessity for reliable charging infrastructure. Together with Legrand, they become a true global leader.
Why should this deal win the Award for Best Deal MidCap 2021?
Through a well-structured and competitive process, the advisor for Ecotap enabled the target to not only secure the required deal certainty but also to find the most complementary partner for scaling the business internationally, while keeping an eye on the company culture. The partnership with Legrand enables Ecotap to continue its international growth leveraging Legrand’s expansive international reach and network. The deal was a landmark transaction as it is a clear example of how large (traditional) corporates are taking positions in the E-Mobility industry, as they are realising an active presence in the E-Mobility market. This transaction signifies that the tipping point in Electric Vehicle adoption has been reached, and Electric Vehicles are here to stay. Significant capital is now flowing in the development of reliable EV charging solutions, which will fuel the adoption of electric vehicles towards greener mobility and a cleaner world. The importance of this strategic transaction is underpinned by the significant deal speed – 3.5 months from initial reach-out until closing. Leveraging its extensive expertise and network in the global E-Mobility space, the advising party for the target obtained maximum value and the most suitable partner for Ecotap and its shareholders, while stimulating a significant positive contribution to society.
Deal rationale:
The objective of the transaction was to find the most suitable partner/owner for Ecotap to further accelerate its international growth. With Legrand, the global specialist in electrical and digital building infrastructures, having an extensive global reach, expertise and network, Ecotap can ensure its reliable charging solutions can be rolled out at a significant scale throughout Europe and Globally. For Legrand, it was important to strengthen its position and presence in E-Mobility.
What is the impact of this deal on the company?
Through this transaction, Ecotap has found an excellent partner in Legrand to scale up while staying close to the company culture. By utilizing Legrand’s extensive global reach, expertise and network, Ecotap can accelerate its international growth. Generally supporting the ambition of becoming the leading charging solution provider globally.
What is the impact of this deal on the direct stakeholders?
By partnering with Lergand, Ecotap ensured the right financial and operational support to seamlessly scale its charging solutions throughout Europe and the US, ensuring large scale availability of reliable charging solutions benefiting both the B2B and B2B2Cmarket. For its existing clients and partners, Ecotap ensured it maintained its independent position, guaranteeing that the solutions provided are in the best interest of the client and end-consumer.
What is the impact of this deal on society?
For society, this transaction is a strong proof point that electric vehicles are an unstoppable trend towards greener mobility, the reduction of carbon dioxide, and a green planet. For Electric Vehicles to roll out at the required pace, to reach the objectives set out by the Paris Climate Agreement and the European Green Deal and the resulting demand, reliable charging infrastructure at a large scale is required. With Legrand on its side, Ecotap can now roll out its charging solution on a very large scale, using Legrand's supply chain and distribution channels throughout Europe and the US.
What was most complex about this deal?
Considering the CSR policy applied at Ecotap and the ambition to grant opportunities to people with a distance to the labour market, next to finding the right partner to further accelerate Ecotap’s growth internationally, one of the main objectives was to find a partner that aligned with Ecotap’s vision on CSR and has a culture where this clearly is deeply integrated. Also, although pursuing a full sale, the Ecotap co-founders had a clear wish to remain involved post-deal and continue to operate as an independent/stand-alone brand. Ecotap is an established brand in the market and valued for its independence, hence a change in ownership or name could have triggered certain partners to distancing themselves from Ecotap. Many players in the EV charging market have shareholders with a particular agenda (Utilities, OEMs, Oil & Gas, etc.), hence maintaining its independence post-transaction was a crucial objective.
