Eneas Energy

Eneas logo

Invested:
November 2010

Exited:
August 2016

Return:
3.3x MoC / IRR 23%

Sector:
Business services

Stage:
Mid (core strategy)

Headquarters:
Drammen, Norway

Region:
Nordics

Business:
Corporate energy services

 

Business at time of investment

Eneas Energy (“Eneas”) was a leading supplier of corporate energy services and had built a customer base of 8,000 clients across the SME sector as well as large corporates and public authorities. It aims to reduce energy costs for the SME sector through its Energy Broker and Energy Audit products, and for large real estate owners through Joint Metering and Energy Efficiency projects.

Investment rationale

The Nordic energy supply market was highly fragmented with low levels of brokerage penetration. The trend towards corporate energy procurement outsourcing and the increasing competition amongst energy suppliers to win customers presented a strong opportunity to build out Eneas brokerage business.

Value creation

  • Strengthened management: Appointed Christian Beck as Chairman and supplemented the management team with key hires whilst providing the structure to institutionalise the business.

  • Focused activities: Reset strategy to focus on the core Energy brokerage product in the Nordic region, and divested non-core divisions.

  • Implemented improved supply agreement with energy provider securing significant profitability uplift of Energy brokerage core division.

  • Ramped up new customer acquisition across Eneas two geographical markets.

  • Completed a NOK 500 million dividend recapitalisation in February 2016, enabling Palamon funds and realise a 1.4x return on the investment whilst continuing to hold a majority ownership position.

Company at exit

Eneas had grown into the largest independent energy broker for SMEs and the clear market leader in Norway and Sweden, representing 1.7 TWh of annual energy consumption and serving more than 25,000 customers with energy brokerage, energy audit and smart metering services.

Result

On 10 August Palamon completed the sale of Eneas to Norvestor Equity for an undisclosed amount.  The sale brought total proceeds form the investment to NOK 750 million (approximately €80 million), representing a 3.3x return on invested capital.