Encavis AG has announced a preliminary operating EBITDA of 319.2 million euros for 2023, a drop from last year's 350.0 million euros. There has also been a minor decrease in EBIT to 194.3 million euros, down from 198.3 million euros. Meanwhile, net operating revenue stands at 449.1 million euros, as compared to the prior year's 462.5 million euros.
Looking ahead to 2024, the board of Encavis forecasts a mild revenue increase to over 460 million euros. The operating EBITDA is projected to surpass 300 million euros, and the operating EBIT is likewise anticipated to exceed 175 million euros. Despite the recent fluctuations, the board remains optimistic about Encavis's trajectory towards mid-term growth.
In other news, Encavis AG has entered into a strategic partnership with Blitz 21-823 AG, also known as BidCo. The latter is a holding company governed by investment funds, vehicles, and accounts supervised and managed by Kohlberg Kravis Roberts & Co. L.P. (KKR) and its affiliates. This agreement is designed to back the long-term growth of Encavis. Family company Viessmann GmbH & Co. KG will contribute as a co-investor in a consortium led by KKR.
Furthermore, BidCo has expressed its intention to commence a voluntary public takeover offer for all the outstanding shares of Encavis. The plan includes a cash consideration of 17.50 euros for every Encavis share, pushing the total equity value to an estimated 2.8 billion euros. This investment agreement has received the green light from the Management Board and the Supervisory Board of Encavis.
