Cavan Town's Kyte bought out by Swiss company

Kyte Powertech, one of Cavan’s largest manufacturing firms, is set to be acquired by a Swiss company.

R&S Group, a leading provider of electrical infrastructure components in Europe and the Middle East, has struck a deal to take over the local firm, formerly known as Pauwels Trafo.

Staff and customers are being assured that it’s business as usual at the plant, which employs close to 500 people and manufactures distribution transformers largely for the UK and European markets.

The agreement marks the exit of MML Growth Capital Partners Ireland, which alongside current management helped purchase the local business back in 2020.

In a statement issued yesterday morning (Tuesday), August 20, Kyte said the company will “continue to operate as normal” following the transaction; while its senior management team, led by CEO Stephanie Leonard and Chief Financial Officer (CFO) Noel Culbert, remain in place, having “reinvested” in the business.

Ms Leonard said yesterday that the acquisition “could not have been better timed”, and it will allow the local business to build on “momentum” generated in recent years and “to invest in the considerable market opportunities in Europe and beyond”.

She expressed optimism for the future: “Our addressable market is growing significantly thanks to a surge in electricity usage, transport electrification and data consumption.”

Expressing her gratitude to MML, staff and customers for their support, Ms Leonard added: “The drive to net zero all over Europe is also stimulating higher growth. We have a strong reputation in the market, enjoy long standing customer relationships and, importantly, have end-to-end manufacturing and testing facilities in Cavan with capacity to expand.”

The company has been asked to elaborate on what this expansion might mean, as well as job security or potential job creation, following the deal.

Kyte was first established as Pauwels Trafo in Cavan in 1977 and later rebranded to CG Power Systems Ireland. A management buyout four years

ago led to the birth of Kyte and a further rebrand.

The acquisition by R&S is seen as a strategic attempt by the Swiss company to broaden its own geographic footprint.

Markus Laesser, CEO of R&S Group, said that mergers and acquisitions is a “strategic pillar” of the group roadmap.

“Combining with a leader in additional markets which R&S Group is currently not serving, will strengthen the combined group and management capabilities. We are gaining in our product offering and technical expertise.”

Kyte is the only manufacturer with the ability to supply the full distribution transformer range to both the UK and Ireland. It currently employs around 490 people and manufactures 17,000 transformers annually at its 17,500sqm facility on the Dublin Road outside Cavan Town.

Revenues to the end of March this year were reported at €165M.

R&S Group operates six manufacturing facilities in Switzerland, Italy, Poland and the Middle East.

It already has a global workforce of over 600 people, and a market capitalisation of around €420m.

The day before the buyout was announced, R&S reported strong first half-year performance figures with an adjusted EBIT margin of 23.2%, and organic growth of around

15%.