Rolls-Royce Acquires UPS Specialist Kinolt

Rolls-Royce said it is strengthening its business in power supply for safety-critical systems with the completion of the acquisition of Kinolt S.A., a Belgian-based specialist in dynamic uninterruptible power supply. The transaction was completed earlier this month following the approval of antitrust authorities.No financial details were provided.

Kinolt’s technology consists of a combination of rotating, kinetic mass storage (flywheel) devices, a diesel engine and a generator that can also be used as an electric motor. The Kinolt system is connected between the external power supply system and safety-critical equipment. In the case of a power failure, the flywheel mass accumulator bridges the first few seconds before the diesel engine takes up the load.

Rolls-Royce, a global provider of backup power generation systems through its Power Systems business with its MTU brand products, are often already used within Kinolt’s solutions. Rolls-Royce said the acquisition is another important step on the strategic journey of Power Systems towards becoming a full-service provider of integrated solutions.

Pandemic Emphasizes Importance Of Energy Security

Rolls-Royce said Kinolt’s uninterruptible emergency power supply technology is particularly well suited to applications where space is at a premium, such as urban areas or installations in existing buildings, which complements Rolls-Royce’s own MTU branded solutions for large scale and greenfield sites. As a result, the deal is expected to result in cost and revenue synergies, medium-term long-term shareholder value in the back-up power generation business.

“The extraordinary times created by the Covid-19 pandemic have shown just how important it is to secure electricity supply to sensitive and critical infrastructure,” said Andreas Schell, CEO of Rolls-Royce Power Systems. “The provision of uninterruptible power is vital in any situation and even more so today, as it ensures the provision of vital services such as medical care or the world’s continued flow of internet traffic. Without it, no public authority or company would be able to act in any crisis.

“We originally signed the deal to acquire Kinolt before the full global impact of Covid-19 was apparent. Since then we have rigorously examined the rationale for the transaction and the opportunities it presents to our business and concluded that the arguments in favor of the acquisition are even stronger than before.”

Power Generation is already the top-selling segment within the Power Systems business, Rolls-Royce said. In the future it said it expects to be the only manufacturer in the world able to supply customers with a complete uninterrupted power generation system from 200 to 3200 kVA.

“We will integrate the products and systems of our new subsidiary into our MTU product portfolio,” said Andreas Görtz, vice president of Power Generation at Rolls-Royce. “Our worldwide sales and service network will open up new market opportunities by offering innovative uninterruptible power solutions. This will significantly strengthen our market position in safety-critical applications.”

Kinolt is based in Grâce-Hollogne in the Belgian province of Liège and was known as Euro-Diesel until mid-2019.