INTERVIEW
Embracing growth opportunities in energy transition: explore a new strategic partnership
Hear from the key players in this recent Oaklins-supported deal
Across the globe, the energy transition is gathering pace. Within the rapidly developing sector of renewable energy, M&A opportunities in outstanding companies are available to investors with a commitment to growth and sustainability.
Oaklins Netherlands recently acted as exclusive sell-side advisor to the shareholders of WATT Infra, an independent grid connection provider specializing in infrastructures for the distribution of renewable energy. Following a competitive process that attracted strong interest from both financial and strategic investors, the company found its new partner in OxGreenfield. This private equity firm focuses on SMEs where value can be created through organic growth and buy-and-build strategies. We spoke to Robbert van Gompel, CEO and founder of WATT Infra, Hank Schraven, partner and co- founder of OxGreenfield, and Tom Snijckers, energy specialist and partner at Oaklins Netherlands, all about the process, from start to finish, and what the future could hold for this new partnership.
Robbert van Gompel – the business owner’s perspective
Getting started in energy transition and sustainability projects
I learned a lot from my experience of working with grid operators and then later on the contractor side. The grid operators had their culture and way of working, and the contractors had theirs, and they were very different. I had a lot of chances to do projects in energy transition, learning how they did it, and how it could be done differently — that was the most important experience. In 2013, I started my first company, WAT, and in 2018, we turned it into WATT Infra. We decided to learn from all that experience and just do sustainable projects: middle-voltage projects for wind and solar, onshore, large solar parks, wind parks and farms, and heating — really sustainable infrastructures.
Deciding to look for a partner to invest in WATT Infra
We were contacted by firms like Oaklins for a while, to get to know each other and hear their opinion about opportunities in the market. We listened, but for the first year, we kept away. However, we were getting bigger and bigger, and we decided that it could help us — we had gone from a startup to a scaleup, but our ambition went further than that. We saw some opportunities that were difficult to create ourselves, because we were very busy running the business. We talked about it for a year, and in 2024, decided we would go for it.
There were so many opportunities to be had. Robbert and his partner were looking for a partner to capture them.TOM SNIJCKERS, PARTNER, OAKLINS NETHERLANDS
Getting ready for the next stage
I think in general what we were doing was right to be attractive for buyers like OxGreenfield. However, the preparation for all those conversations with potential partners, that was a learning phase. Oaklins helped us to think about the future, and how to put things in perspective and be strategic. Oaklins were one of the first companies we talked to in 2023, and they came back a year later. Our main contact was with Tom, and we had a personal click. They have a good track record, including in the energy transition. There were a few other options, but I don't think we had a lot of doubts about going for Oaklins.
Challenges during the transaction process
Most of the time, I enjoyed the process very much! As did Jasper, my partner [technical director at WATT Infra]. I think the most difficult phase was the due diligence. So it was a lot, very intensive. But like I said, I enjoyed it a lot. I'm privileged that we could run a process like this. It's one of the parts of my career where I’ve learned the most, about all kinds of things: tax, financial, legal, commercial, insurance. Everybody challenges you to explain everything, so it helps you to look at your company inside and out.
Advice for companies in a similar situation
I think it's a smart thing to do, selling part of the company like we did. In terms of the process, if I was to do it again, I would want to know more about what's coming and every step; what does everything mean, and what to be aware of. We learned a lot, but maybe it's a good thing to learn before you start, in the preparation phase.
We were very glad we did the deal with Oaklins. It was a great team, all the way through.ROBBERT VAN GOMPEL, FOUNDER AND CEO, WATT INFRA
Ambitions for WATT Infra for the next few years
We want to expand. We’re ambitious. We’re in a very dynamic market — a lot of things are changing, but I still believe we are in the right position and have the right talent to move forward. We want to grow with acquisitions, and geographically. We work all over the Netherlands now, so maybe Belgium or Germany. There are a lot of opportunities if we decide to go that way.
Hank Schraven – the investor’s approach
Developing an investment outlook
I started in 2008, investing in a company that was facing financial problems. During the financial crisis, between 2010 and 2015, we specialized in restructuring investments. We always acted as a hands-on investor and that’s the basis of what we do now.
We are also investing in companies that want to transfer from owner-led to management-led, and most of the time, that's a short turnaround. We assist companies in their transition phase, to gain independence from the owners or the founders. Usually we sell companies to strategic partners, rather than financial. We are there for the transition period, during which we want to create value.
Goals when identifying and investing in a company
We always invest in companies that have technical competence and high entry barriers. In this case, there are a lot of talented, technically skilled engineers at WATT Infra, and that's the added value that gives them the position they have in the market. We have three ways of seeking our investment acquisition targets. First of all, desk research, to be constantly looking in the market for acquisition targets. Secondly, we drink a lot of cups of coffee with advisors who are also active in the market. I would say that 75% of our acquisition targets come through that channel. The M&A market in the Netherlands is very dynamic at the moment — it’s a mature and developed market. And the third method is our own network of investors.
Seeking growth and ROI
We don't have a growth strategy as an investment company, we have a profit strategy. What we give our investors is return on investment. So how does WATT Infra fit into our return on investment strategy? A key to our investing is the energy transition because we think there are a lot of growth opportunities in that particular area. We also like to invest in companies contributing to a more sustainable world. So the combination of those two things in WATT Infra, I would say, fit our investment strategy. In addition, WATT Infra is positioned in technical engineering, but also in civil engineering. That combination, in a country where we have limited space to work and which is crowded, in one company is also something we were intrigued by.
We invest in companies because we want growth, and cost savings are not one of the first things we think about after the process is done. If it’s needed, it will be done, but preferably not. Normally we look to hire people instead of firing them.
Looking forward together
HANK: Within the next five years, I would say, we’ll stay focused on companies in the energy transition and sustainability. Beyond that, it’s a bit too far ahead to know. But in the next five years, we would like to invest more in this sector. Huge investments are still expected in the near future, but the difficulty is that it is very unpredictable. There are a lot of things happening at the same time in this sector.
ROBBERT: When we started seven years ago, it was a market of millions, and now it's a market of billions. So that makes it very interesting for international investors, startups and international companies who are trying to get a foot on the ground in the Netherlands and the countries around us. But it's also true that every few months there are new opportunities, because of the changing market. It needs different solutions for new problems. This is a very exciting business to work in.
HANK: The market didn’t change for 50 years and now there’s a lot of change.
In our business, the financials are always a priority, but in the end, people make the difference. And that has really been the case here.HANK SCHRAVEN, PARTNER AND CO- FOUNDER, OXGREENFIELD
Tom Snijckers — insights from the advisor
Our initial mandate came when Robbert approached Oaklins, saying that there were many opportunities ahead of WATT Infra. Standing alone, they could capture some of these opportunities, but they wanted to capture them more quickly — how could Oaklins help in realizing that? We had to find the right person together. For Robbert and Jasper, it wasn’t initially clear what that partner looked like. Should it be a strategic company, or a private equity company? Should it be minority or majority? They didn’t want to sell the whole business, but to stay involved and accelerate growth. And what that looked like was yet to be seen.
An important moment was after we did the marketing. There was a lot of interest in WATT Infra, which is a big compliment to Robbert and Jasper for the business they had been building — to see that there was so much outside interest.
They kept their employees informed at key moments. An additional investor means the bases can grow bigger more quickly, and that means there are more opportunities for people to grow within the organization. For clients, it means the business accelerates and there is more professionalization, making it able to offer more products and services at a higher quality.
The energy transition started out as a sustainable movement. With Ukraine and other conflicts, it also meant needing more energy independence. The current global crisis reconfirms that we need to reduce our dependence on gas and oil, which means getting our energy from different sources, such as wind and solar. But it also means that we need to electrify — for example, we need our cars to run on electricity rather than fuel — so electrical infrastructure is necessary as well as reinforced electricity grids. In the longer term, that means more work for WATT Infra.
We spoke to many potential partners, we knew what we didn't want. There are many private equity firms, of course. However, the talks that we had with Hank and Harm from OxGreenfield were always in the back of our minds.
I think what truly made a difference is that, from the first meeting, the connection with the team was very strong. And the DNA of the team proved to be the deciding factor for choosing OxGreenfield, along with their hands-on approach.
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