In Transactions

The Japanese conglomerate Mitsui and the European Investment Bank give the means to the French industrial group to scale up, particularly in the electromobility markets

Paris, December 18, 2017 – Forsee Power, the specialist in smart battery systems for urban mobility, announces a financing of 55 million euros to support the industrialization of its battery systems. This financing was granted by Mitsui & Co., Ltd.(Mitsui), the European Investment Bank (EIB) via the European Fund for Strategic Investments (EFSI) and Idinvest.

Forsee Power to tenfold its industrial capacities to support the energy transition of public transport

Driven by the bus, the energy transition of public transport has greatly accelerated in Europe since the beginning of 2017 and manufacturers are now engaged in production of vehicles in series to cover a European market estimated at 3,500 buses per year by 2020, which is expected to double over the five following years.

This funding will allow Forsee Power to tenfold its production capacity and start mass production of smart battery systems in Europe and China, particularly for the electromobility markets (bus, train, truck, boat, scooter). Consequently, the Group will hire 250 people in France by the end of 2021.

With the most complete range of batteries on the transport markets, Forsee Power is very well positioned for the future; it has already signed major battery supply contracts with renowned scooter manufacturers as well as bus manufacturers, including CNHI (Heuliez), CaetanoBus in Portugal and Wrightbus in the United Kingdom. In addition, the Group is taking strong positions in the industrial vehicles and railway markets.

« This new momentum from Mitsui and the EIB is a strong signal for our company and for the battery industry in Europe » recognizes Christophe Gurtner, CEO of Forsee Power. « The Forsee Power Group wants to position itself among the big players of electromobility and this financing will allow us to propel ourselves into this flagship market that has been driving us for many years » he concludes.

Mitsui regards “Mobility” as one of the key growth areas to focus on

Mitsui is one of the most diversified and comprehensive trading, investment, and service enterprises in the world, with 139 offices in 66 countries as of December 1, 2017. In its Medium-term Management Plan 2 announced in May this year, Mitsui selected “Mobility” as one of the key growth areas to focus on, and it is promoting the expansion of automotive materials through to mobility and transportation services.

Mitsui said “Electrification is one of the most important topics in the Mobility area, so our investment in Forsee Power has great strategic meaning and gives various opportunities for future collaboration in the entire value chain, from raw materials to electrochemistry, vehicles, second life and recycling.”

This participation of EU Fund for Strategic Investments reinforces Forsee Power’s investment strategy

The strategy of Forsee Power is to expand its production of battery systems in its international markets. This participation of the EIB is a real accelerator for the Group, which can reinforce its commitment to accelerate recruiting efforts and develop its investment strategy.

As Ambroise Fayolle, Vice President of the European Investment Bank, emphasizes: “Our objective is to support Forsee Power‘s production scale up, development of its salesforce and its R&D activities to strengthen its competitive advantage and gain new markets. Coupled to its commitment to sustainable transport, this new signature under the Juncker Plan demonstrates a more sustainable use of EU resources as well as delivering growth and job opportunities in Europe. Innovation and climate action are two areas, which are of utmost importance for the EU bank.”

As it stands, the European Fund for Strategic Investments (EFSI) which is the central pillar of the Juncker Plan is an ‘initiative to fill the current investment gap faced in the European Union. Launched jointly by the EIB Group and the European Commission, it aims to relaunch  investment and restore EU competitiveness, thus increasing growth and creating jobs. In France, the Juncker Plan is continuing to gather momentum with a running total of 105 operations providing EUR 8.7bn in EIB Group financing set to mobilize EUR 40bn in additional investments.

In addition, on the occasion of this major financing, Idinvest Partners, shareholder of Forsee Power since 2013, strengthens its stake in the Group.

About Forsee Power
Forsee Power is an industrial Group specializing in smart battery systems for electric transport (Smart Transport), portable and mobile equipment (Smart Life) and energy storage markets (Smart Energy).

As a major commercial and industrial player in Europe, China and North America, the Group designs, assembles and supplies energy management systems based on the most robust cells on the market as well as provides installation, commissioning and on-site or remote maintenance. With its modular solutions, Forsee Power guarantees that customers buying its batteries enjoy security, energy efficiency, thermal management, long-term reliability and long working life. The Group also offers financing solutions (battery rental) through its participation in NEoT Capital and second life solutions for transport batteries.

Producing innovative products with high added value that embody its scientific and industrial strength, Forsee Power is an agile and reliable partner to the energy transition. The Group has already invested over €110 million in R&D and hosts a team of 60+ engineers benefitting from expertise all along the value chain. | @ForseePower

About Mitsui
Mitsui & Co., Ltd. is one of the most diversified and comprehensive trading, investment and service enterprises in the world, with 141 offices in 66 countries as of March 2015. Utilising its global operating locations, network and information resources, Mitsui is multilaterally pursuing business that ranges from product sales, worldwide logistics and financing, through to the development of major international infrastructure and other projects in the following fields: Iron & Steel Products, Mineral & Metal Resources, Infrastructure Projects, Integrated Transportation Systems, Chemicals, Energy, Food Resources, Food Products & Services, Consumer Services, IT & communication, Corporate Development Business.

Mitsui is actively taking on challenges for global business innovation in various business sectors all over the world and utilising big data is becoming increasingly important to maintain and strengthen the business.

About the European Investment Bank (EIB) and the Investment Plan for Europe
The Investment Plan for Europe, the Juncker Plan, focuses on boosting investments to create jobs and growth by making smarter use of new and existing financial resources, removing obstacles to investment and providing visibility and technical assistance to investment projects. The European Fund for Strategic Investments (EFSI) is the central pillar of the Juncker Plan. It provides a first loss guarantee, allowing the EIB to invest in more, often riskier, projects.

So far, the EFSI projects and agreements approved for financing are expected to mobilise more than €250 billion in investments and support some 528,000 SMEs across all 28 Member States. The EIB estimates that by 2020 the EFSI will have helped create 700,000 jobs and add 0.7% to EU GDP.

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The European Investment Fund (EIF) is part of the European Investment Bank group. Its central mission is to support Europe’s micro, small and medium-sized businesses (SMEs) by helping them to access finance.

About Idinvest
Idinvest Partners is a reputed European mid-market private equity firm. With close to €9bn under management, the firm has developed several areas of expertise including innovative startup venture capital transactions; mid-market corporate debt, i.e. single-tranche, senior and subordinated debt; primary and secondary investment and private equity advisory services. Founded in 1997 Idinvest Partners used to be an Allianz subsidiary until 2010, when it branched out as an independent firm.

Advisors in the transaction

Forsee Power
M&A financial advisor: Ekapartners (Eric Toulemonde, Marc-Aurèle Taverna, Jin Kim)
M&A lawyer: STC Partners (Delphine Bariani, Faustine Carrière)
Corporate lawyer: HPML (Velin Valev, Marie Kanellopoulos)
Financial due diligence: KPMG (Wilfrid Lauriano Do Rego, Véronique Harnois)
Strategic due diligence: E-Cube (Alexandre Bouchet)

M&A Lawyer and legal due diligence: Dentons (Pascal Chadenet, Andras Haragovitch)
Financial due diligence: E&Y (Jun Inoue, Renaud Regner)
Tax due diligence: E&Y (Masahiro Kimura)

European Investment Bank
Lawyer: Willkie Farr & Gallagher (Amir Jahanguiri, Jesse Gero)


Source : Forsee Power