Hidroelectrica signs 68 million RON deal to acquire UCM Resita

Hidroelectrica announces a transaction for the takeover of UCM Resita (UCMR), specialized in manufacturing and trading of hydro aggregates and ancillary equipment, as well as in providing maintenance services and specialized technical assistance in the energy sector.

The transaction will be completed following the fulfillment of the conditions precedent, which include, among others, the approval by the shareholders within Hidroelectrica’s GMS. The total price for the transfer of ownership of the business and of all assets pertaining to the transaction is 67.8 million RON.

“The initialing of the documents is another step towards bringing into our company’s portfolio a unit whose tradition exceeds 250 years. The know-how and experience of UCMR, a company that has contributed over time to equipping approx. 80 percent of Hidroelectrica power plants , will open up new opportunities through the integration with Hidroserv. We want to create a company with top performance, able to provide services not only for the parent company, but to be really competitive in the national and international profile markets. We believe there is potential, we believe in sustainable growth and we act in this sense as a team,” said Karoly Borbely, president of the Hidroelectrica Directorate.

The transaction aims to secure UCMR’s asset base, unique in Southeastern Europe, with an essential role in streamlining the maintenance and refurbishment activity, improving the availability of hydropower units, for ensuring a more efficient management of the electricity generation assets owned by Hidroelectrica, thus achieving the consolidation of the maintenance function at group level.

The transaction will allow Hidroelectrica to hold, within the Group, the equipment and the knowhow necessary for implementing the investment program in its own portfolio. Consequently, it will benefit from the integration of UCMR’s engineering design and equipment production capabilities with the assembly and maintenance capabilities held by Hidroserv, with a positive impact on cost control and on the duration of modernization, refurbishment, and maintenance projects.

The business transfer includes the takeover of: – ABC industrial production platform and partially Calnicel production platform. – specialists in the field of engineering design, technology, and execution – projects know-how and documentation from its own archive – assets/equipment with machine tools and machinery necessary for executing both new, complex equipment, as well as repairs and refurbishment of equipment in operation.

Established in 1771, UCM Resita is the oldest industrial manufacturing unit for construction of machinery in the energy sector in Romania and one of the oldest in Europe.

The company specializes in the engineering design, execution, refurbishment, and repair of hydro energy equipment, including Kaplan, Francis, and Bulb turbines, generators, excitation equipment, high-pressure oil installations, shut-off valves, and ancillary equipment.

UCMR has contributed to the production of equipment of over 80 percent of the hydro energy groups in the Hidroelectrica’s portfolio.