Private Assets combines Kieler Maschinenwerke and Pro-Valve into Kiel Power Systems SE

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Private Assets combines Kieler Maschinenwerke and Pro-Valve into Kiel Power Systems SE

Hamburg, 26 August 2026. Private Assets SE & Co. KGaA (“Private Assets”) has combined its two Kiel-based industrial holdings Kieler Maschinenwerke GmbH and ProValve GmbH under Kiel Power Systems SE (“KPS” or the “Company”).

KPS has already been established and entered in the commercial register. The Company is on a clear growth trajectory and this new structure is intended to streamline operations and to maximise growth. Private Assets is examining strategic options for this purpose, which include equity and debt financing alternatives as well as a potential listing.

Growing demand for large-engine components

KPS manufactures heavy and complex components for large engines, including cylinder crankcases, cylinder heads and connecting rods with unit weights of up to 100 tonnes, as well as high-precision valve components used in these engines. Its customers operate in the business areas of data centres and energy supply, maritime and defence. Demand has increased significantly, particularly in the data centre and energy business area. In May 2026, series production of large components for gas engines supplied to a leading global engine manufacturer began in Kiel. The production ramp-up is proceeding according to plan. The components are key parts of 20-cylinder gas engines used primarily to supply power to data centres in the United States. A key driver is the increase in global energy demand resulting from AI-based applications: Operators of large data centres are increasingly turning to high-output gas engines to reduce their dependence on fluctuating loads on the public grid. Only a small number of companies in Europe is capable of manufacturing the required components in series production in the necessary weight classes and to the required tolerances.

KPS’s total order backlog¹ currently stands at EUR 260 million. Of this amount, EUR 110 million is a fixed order backlog² and contractually committed, while a further approximately EUR 150 million is a soft order backlog³ based on framework agreements and customer commitments for which binding purchase orders are expected. In the 2025 financial year (to 31 December 2025), the Company generated total revenue of EUR 41 million; for 2026 (to 31 December 2026), a significant increase in revenue to more than EUR 50 million is expected. The contractually committed orders fully utilise existing capacity through to almost the end of 2027, providing good visibility on future revenue. KPS expects total revenue of more than EUR 90 million in 2027, representing a significant increase of around 80% compared with expected total revenue for 2026.

Alongside revenue growth, KPS is targeting a higher EBITDA margin⁴. The Company expects the EBITDA margin to exceed 5% in 2026. Management’s plan for 2027 envisages a double-digit EBITDA margin. Two factors are contributing to this development: With the rapidly growing share of gas-engine components in its product portfolio, KPS is increasingly manufacturing higher-value products. At the same time, continuous efficiency improvements in production and improved fixed-cost absorption as a result of higher revenue are driving increased profitability.

Capacity at the Kiel site to be doubled

To capitalise on the existing growth potential, strategic financing options are currently being examined to support the further expansion of production capacity. The planned investments are primarily intended for additional machinery and the expansion of the site. At the same time, the sales organisation is to be expanded and productivity across operations further increased. Initial measures to prepare for growth have already been implemented: The machinery at the Kiel site has been expanded, additional skilled workers have been hired and employees have received further training. To meet growing demand and address additional areas of application, production capacity at the Kiel site is to be doubled.

“The Kiel-based companies are facing a growth opportunity unlike anything seen at the Kiel industrial site for decades,” says Sven Dübbers, CEO of Private Assets. “We have the highest confidence in the management board of KPS and in this exciting next phase of growth. We look forward to continuing to support KPS as a long-term shareholder as management rolls out the planned investments.”

Peter Nortmann, CEO of Kiel Power Systems SE, adds: “Since the start of series production of our next-generation gas-engine components in May 2026, demand from our customers in the data centre and energy infrastructure sectors has grown faster than ever before in Kiel’s industrial history. We are investing in our employees, machinery, additional capacity and jobs in Kiel and Neumünster to meet this demand. This marks the beginning of a new chapter for a site where sophisticated engineering solutions for leading industrial customers worldwide have been manufactured for more than 150 years.”

The Kiel site has been one of northern Germany’s long-established industrial and engine-manufacturing locations for decades. The Company’s roots at the site date back to 1866.

About Private Assets SE & Co. KGaA

Private Assets is a Hamburg-based investment company focused on corporate holdings in special situations. Its shares are traded in the m:access SME segment of the Munich Stock Exchange under ISIN DE000A3H2234.

Private Assets invests primarily in corporate carve-outs and mid-sized companies that show below-average performance at the time of investment. In addition, Private Assets invests in companies facing unresolved succession issues.

The management team has many years of experience and a proven track record in special-situations investing. To ensure the rapid and consistent implementation of operational measures, Private Assets maintains its own task force as well as an experienced in-house team with expertise in areas including procurement, project management, sales & marketing, legal and finance.

Through close operational involvement and active management of its portfolio companies, Private Assets implements transformation processes rapidly, efficiently and sustainably.

www.private-assets.de

Press Contact:
Julia Hisge
möller pr
Phone: +49 221 801087 90
jh@moeller-pr.de

About Kiel Power Systems SE

Kiel Power Systems SE, headquartered in Kiel, is the parent company of Kieler Maschinenwerke GmbH and Pro-Valve GmbH. The Group manufactures components for large engines and employs a total of around 210 people at its Kiel and Neumünster sites. It is owned by Private Assets SE & Co. KGaA.

www.kiel-power-systems.com

Investor Relations:

info@kiel-power-systems.com

1 Total order backlog is defined as fixed order backlog plus soft order backlog.

2 Fixed order backlog is defined by the total contracted revenue from signed customer orders.

3 Soft order backlog represents expected future customer demand not yet covered by binding purchase orders, based on framework agreements or other documented commitments, customer indications and verbal commitments. Where appropriate, expected volumes are probability-weighted to reflect the level of certainty.

4. EBITDA margin is defined as earnings before interest, taxes, depreciation and amortization divided by revenue.

IMPORTANT NOTICE

Note certain historical figures are currently unaudited but combined financial statements of Kiel Power Systems SE consisting of Kieler Maschinenwerke GmbH and Pro-Valve GmbH are being prepared in accordance with the International Financial Reporting Standards (“IFRS”) in the English language, for the financial years of the KPS Group ended 31 December 2025, 2024 and 2023 and will comprise Combined Statement of Financial Position, a Combined Statement of Profit and Loss, a Combined Statement of Comprehensive Income, a Combined Statement of Changes in Equity (Net Assets), a Combined Statement of Cash Flows and the accompanying Notes as well as a management report in the typical “three pillar” format and are expected to be available on the investor relations website of the KPS Group shortly.

This announcement is not and does not constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person in the United States of America ("United States" or "U.S."), Australia, Canada or Japan, or any other jurisdiction in which such offer may be restricted. Any securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended ("Securities Act"), or the securities laws of any state or other jurisdiction of the United States, and may not be offered, sold, or otherwise transferred, directly or indirectly, in or into the United States absent such registration, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements under the Securities Act, and in compliance with any applicable securities laws of any state or other jurisdiction of the United States.

There will be no public offer of the securities in Kiel Power Systems SE ("Company") referred to in this announcement ("Securities").

This announcement is not a prospectus. Investors should not purchase or subscribe for the Securities except based on the Group's publicly available information.

In the United Kingdom, this announcement is only addressed to and directed at persons who are "qualified investors" as defined under paragraph 15 of Schedule 1 of the Public Offers and Admissions to Trading Regulations 2024 (POATR) and who (i) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), or (ii) are high net worth entities falling within Article 49(2)(a) to (d) of the Order or (iii) are persons to whom this announcement may otherwise be lawfully communicated (all such persons being referred to as "relevant persons"). This announcement is directed only at relevant persons. Any person who is not a relevant person should not act or rely on this announcement or any of its contents. Any investment or investment activity to which this announcement relates is available only to relevant persons and will be engaged in only with relevant persons.

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Subject to compliance with applicable law and regulations, neither the Company nor its affiliates intend to update, review, revise or correct any forward-looking statement contained in this announcement to actual events or developments whether as a result of new information, future developments or otherwise, and do not undertake any obligation to do so. This announcement does not constitute investment, legal, accounting, regulatory, taxation or other advice. No person is authorized to give any information or to make any representation not contained in and not consistent with the announcement and, if given or made, such information or representation must not be relied upon as having been authorized by or on behalf of the Company.

This announcement contains certain supplemental or alternative measures of operating and financial performance that are not calculated in accordance with the International Financial Reporting Standards as adopted by the European Union ("IFRS") or the German Commercial Code (Handelsgesetzbuch) and German generally accepted accounting principles, and which would be considered non-IFRS/non-GAAP financial measures. These non-IFRS/non-GAAP measures are presented because the Company believes that they and similar measures are widely used in the markets in which it operates as a means of evaluating a company’s operating performance and financing structure. Such non-IFRS/non-GAAP financial measures may not be comparable to other similarly titled measures presented by other companies, nor should they be construed as an alternative to other financial measures that are computed in accordance with IFRS or other generally accepted accounting principles. There are material limitations associated with the use of such measures. You are cautioned not to place undue reliance on any non IFRS/non-GAAP financial measures and ratios included herein.

This announcement does not purport to contain all information required to evaluate the Company and/or its financial position. Financial information (including percentages) has been rounded according to established commercial standards.

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