Cadeler (CADLR) investor relations material

Deal rationale and strategic fit

• Acquisition of Menck for EUR 501 million expands offshore wind foundation installation capabilities, supporting ambitions to be a preferred partner and enabling a more integrated, end-to-end solution for clients.

• Menck's expertise in hydraulic hammers, grouting, drilling, and tooling complements the acquirer's portfolio and addresses high market demand for complex offshore wind projects.

• The deal combines specialist technology and experience with an industry-leading fleet, positioning for growth in larger, more complex projects and creating a resilient supply chain.

• Preserving Menck's independent market position ensures continued service to a broad customer base and mitigates customer attrition risks.

• Menck's next-generation Wind Hammer, launching in 2027, will enable installation of ultra-large foundations.

Financial terms and conditions

• Transaction valued at EUR 501 million, financed through available liquidity and a EUR 380 million acquisition facility from DNB Bank ASA and Rabobank, to be refinanced with long-term financing and operational cash flow.

• Menck's average annual revenue (2023–2025) is EUR 113 million, with 43% from equipment rental and a 28% EBITDA margin.

• 2026 projections: EUR 133 million revenue, 33% EBITDA margin, and increased rental share.

• Medium-term targets (2027–2029): 20% CAGR, 70% rental revenue, 50–55% EBITDA margin, and average CapEx of EUR 22 million.

• Transaction is accretive to EBITDA multiples, with enterprise value to projected midterm EBITDA below 5x.

Synergies and expected cost savings

• Integration unlocks commercial and operational synergies across engineering, procurement, and project delivery, reducing reliance on subcontracted services.

• Combining vessel and hammer operations reduces mobilization/demobilization times and increases equipment utilization.

• Significant synergy potential in lifting, handling, and noise mitigation technologies, with further efficiencies anticipated as engineering teams collaborate.

• Enables more efficient deployment of high-value equipment and captures a larger share of project economics.

• Increased agility in project planning and execution for customers.