Waterland Private Equity acquires climate-friendly energy company Modstrøm Danmark A/S, which is the leading independent electricity supplier and a significant contributor to the green transition in Denmark. Modstrøm provides electricity and advises on energy improvements, and the company furthermore performs energy saving projects and sells energy saving products to consumers and businesses. In 2019, Modstrøm’s revenue was DKK 257 million (EUR 35 million), and its operating profit (EBITDA) increased by 47% to DKK 30 million (EUR 4 million).
Modstrøm was established in 2008 and has focused on reducing customers’ energy consumption ever since based on the philosophy that “the only truly green kWh is the one that is never consumed”. In recent years, the company has generated significant growth, and Modstrøm currently has more than 75,000 customers who, in addition to electricity, receive advice concerning energy improvements and buy green solutions such as heat pumps, smart thermostats, insulation, solar cells, charging stations, LED lighting and water saving devices. To encourage its customers’ green transition, Modstrøm provides energy customers with an option to charge product purchases to the electrical bill interest-free and at no extra cost.
“We are proud to contribute to the personal effort made by thousands of customers to promote the green transition. We are looking forward to welcome Waterland on board as they will contribute with experience from other growth companies as well as competencies and capital supporting Modstrøm’s continued development. Together, we will deliver personal and bespoke energy services enabling each homeowner and business to reduce their energy consumption to the benefit of their personal finances and the climate. The partnership lets us become Denmark’s preferred independent energy company and enables us to distribute the energy saving solutions that are necessary to ensure a successful green transition,” says Anders Millgaard, founder and CEO of Modstrøm.
“Modstrøm has established a strong market position in an exciting industry with great growth potential, and the company matches our investment focus on sustainability. We look forward to deploying Waterland’s toolbox and hands-on experience to further develop the company in close partnership with management and employees. Together, we will generate continued organic growth and drive professionalization and consolidation of the industry, which holds interesting acquisition and development prospects originating from our society’s green transition,” says Kaspar Kristiansen, Managing Director, Waterland Nordic.
Denmark’s pledge to reach a 70% CO2 reduction by 2030 imposes increased demands on the energy industry in the coming years. Household electricity consumption is expected to increase due to replacement of domestic gas and oil boilers with heat pumps as well as increased adoption of electric vehicles. Businesses and consumers are simultaneously expected to further sharpen their focus on energy efficiency, and Modstrøm will continue to provide energy saving solutions to meet the increasing demand.
Waterland becomes a majority shareholder in Modstrøm, and Anders Millgaard continues as CEO and co-owner, while the other current shareholders leave the group of owners. The parties have agreed not to disclose the purchase price.
- Austrian Private Equity & Venture Capital Organisation (AVCO)
- Belgian Venturing Association (BVA)
- British Private Equity & Venture Capital Association (BVCA)
- Bundesverband deutscher Kapitalbeteiligungsgesellschaften (BVK)
- Irish Venture Capital Association (IVCA)
- Nederlandse Vereniging van Participatiemaatschappijen (NVP)
- Polskie Stowarzyszenie Inwestorow Kapitalowych (PSIK)
- Swiss Private Equity & Corporate Finance Association (SECA)