tic elkas A/S - Comprehensive Analysis Report

Summary

tic elkas A/S, established in 2019 from the merger of Technodan Industrial Controls A/S and JE-Elkas A/S, has grown into a significant entity in the industrial automation and electrical panel sector. The company specializes in technical engineering, industrial automation, electrical panels, power supplies, and related services, serving a diverse clientele including major Danish and international clients. Headquartered in Skovlunde, Denmark, with operations extending to Eastern Europe, tic elkas A/S has recently become a foundational component of Elcor, a larger Nordic group formed under the ownership of Axcel.

Elcor's mission is to empower customer competitiveness and support the green transition of industries through sustainable electric switchboards and panels. The group aims to become the Nordic region's largest manufacturer of electrical panels for automation and industry, consolidating a fragmented market and driving advancements in automation, digitalization, energy transition, and reshoring.

1. Strategic Focus & Objectives

Core Objectives

The strategic focus of Elcor, the consolidated group incorporating tic elkas A/S, is to be a leading Northern European provider of electrical control and power distribution panels and their associated services. A primary objective involves consolidating the fragmented Northern European market for electrical panels through strategic acquisitions. Furthermore, the group is committed to empowering its customers' competitiveness and actively supporting the green transition of various industries by delivering sustainable electric switchboards and panels.

Specialization Areas

Elcor specializes in delivering high-quality, complex solutions across several key areas:

• Power and Distribution Boards: Precision-built panels ensuring reliability, safety, and performance.

• Industrial Automation: Customized panel design, hardware manufacturing, and advanced software automation solutions.

• Machine Installation: Comprehensive installation services for industrial machinery.

• Service and Maintenance: Ongoing support to ensure long-term reliability and optimal performance of systems.

• Drives: Solutions for controlling electric motors and other machinery.

• Technical Engineering: Expertise in designing and specifying complex electrical systems.

The group's unique value proposition lies in its ability to offer end-to-end solutions, from initial design and specification to hardware and software production, complemented by comprehensive support for installation and maintenance. This approach leverages extensive technical expertise and local presence, combined with efficient European production capabilities.

Target Markets

Elcor serves a broad array of primary market segments, driven by growing demands in automation, digitalization, energy transition, and reshoring. Key industries include:

• Food & Beverages

• Infrastructure

• Marine

• Pharma

The company's market positioning strategy focuses on providing tailored solutions for critical industrial processes to major Danish and international clients, including prominent names such as Novo Nordisk, Fujifilm Biotechnologies, GEA Process Engineering, Rockwool, and Siemens.

2. Financial Overview

Funding History

tic elkas A/S has undergone significant financial transformations and investments to support its growth and consolidation strategy.

• December 2022: tic elkas A/S received an investment from Dansk Ejerkapital, which facilitated a generational change within the company.

• Autumn 2023: Dansk Ejerkapital sold its shares in tic elkas A/S to Axcel.

• September 2023: Nordic private equity firm Axcel acquired tic elkas A/S from Dansk Ejerkapital and the company's management team. Concurrently, Axcel also acquired Eegholm Group. These acquisitions were part of Axcel Fund VII’s strategic initiative to build a platform for consolidation in the Northern European electric panel market. At this juncture, the combined turnover of tic elkas A/S and Eegholm Group was projected to exceed DKK 700 million (approximately $100 million or €93.9 million).

• 2023: Following further strategic mergers and acquisitions, including with the Norwegian electrical panel manufacturer Elcor and other companies like Titech Electric, EA Automatik, Automatic Syd, and Elcor+, the newly formed Elcor group, backed by Axcel, recorded revenue of EUR 153 million.

• Fund Utilization and Impact: The investments and subsequent acquisitions have been pivotal in establishing the Elcor group as a major player, enabling market consolidation and expansion across Northern Europe. The management teams of the acquired companies, including tic elkas A/S, have reinvested alongside Axcel, demonstrating a shared commitment to the group's growth trajectory.

3. Product Pipeline

Key Products/Services

The Elcor group, incorporating the offerings of tic elkas A/S, provides a comprehensive suite of products and services:

• Electrical Control and Power Distribution Panels:

• Description: Precision-built, customized panels designed to ensure reliability, safety, and optimal performance across various industrial applications.

• Development Stage: Mature, with continuous innovation in customized panel design and hardware manufacturing to meet evolving client needs and industry standards