Cadeler (CADLR) M&A announcement summary

Deal rationale and strategic fit

• Acquisition of Menck for EUR 501 million expands offshore wind foundation installation and transportation capabilities, enabling a more integrated and complete offering for clients.

• Menck's expertise in hydraulic hammers, grouting, drilling, and tooling aligns with ambitions to operate multiple foundation projects in parallel and supports larger, more complex offshore wind projects.

• The deal addresses client concerns over access to both vessels and pile-driving technology, enhancing execution certainty and resilience.

• Menck's 150-year history, global presence, and data-driven approach bolster the combined group's technological leadership and market reputation.

• Preserving Menck's independent market position ensures continued service to a broad customer base and supports long-term growth.

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.

• Enterprise value to projected midterm EBITDA is below 5x.

Synergies and expected cost savings

• Significant synergy potential in engineering, procurement, and project delivery, leveraging Menck's data and vessel operations.

• Integration enables more efficient use of foundation installation capabilities, reduces reliance on subcontracted services, and improves equipment utilization.

• Combined offering aims to capture a larger share of project economics and unlock operational synergies.