Telnet, based in Zaragoza, Spain, is a pioneering and leading company in the production of fibre optic cables with over 30 years of experience, serving major operators and utilities in Europe.
Tratos Cavi, founded in 1966, is a leading multinational company that produces cables for various sectors, including energy, submarines, and telecommunications, among others.
Tratos has invested in Telnet as part of a growth plan in the European market, consolidating its international organic growth with acquisitions planned in multiple regions.
Telnet was founded in 1996 and experienced sustained growth in multiple business divisions – fibre optic cables, antennas, passive components, and GPON equipment – and regions – mainly Europe, South America, and Asia. The COVID crisis and the slowdown of certain markets and business lines in which it operated led to operational deterioration, making the debt incurred in the growth process unsustainable.
Endurance acquired the production unit in a judicial process, preventing the company’s closure and saving more than 100 direct jobs, unlocking the potential of its fiber optic cable and passive optical component division. With this operation, Telnet completely cleaned up its balance sheet and reversed the trend of operational deterioration, significantly improving profitability, with a turnover of approximately €20 million.
The transformation process was based on the following pillars: (i) injection of financial resources to restore the working capital cycle, (ii) re-establishment of relationships with key customers and suppliers, (iii) focus on product development by enhancing the R&D department, (iv) internationalization, especially in the UK and Germany – with the aim of exceeding 60% international sales, and (v) implementation of agile organization and processes, essential in an increasingly unstable market context.
Tratos Cavi, founded in 1966 in Pieve Santo Stefano, in the Italian Tuscany, is one of the world’s leading multinationals in the design and production of cables for various sectors, including highly complex solutions such as superconducting cables for nuclear fusion, submarine cables, and offshore platform cables, cables that withstand extreme temperatures – both high and low (including freezing), high voltage power transmission cables, renewable energy cables, railway application cables, OPGW or ASNZS-MTO, among others.
Tratos bases its technological leadership on constant innovation thanks to its continuous investment in R&D+i, with more than 11,000 references, and solutions to challenges posed in complex situations, resolved in close collaboration with its clients.
Tratos has consolidated years of technological leadership with constant business growth, expected to exceed €250 million in 2024. The investment in Telnet illustrates the ongoing ambition to consolidate a European project of global leadership in the cable industry, with organic and inorganic growth in the key regions where it operates.
About Tratos Cavi
Tratos Cavi is one of the leading multinationals in cable production with a broad product portfolio – over 11,000 references – covering the entire range of markets. Through its integrated process, it offers efficient solutions to the highly complex needs of its clients. By 2024, Tratos Cavi will have over 500 employees in its plants and offices in Italy, Spain, the UK, Germany, and China.
More information at Tratos Group
About Endurance
Endurance Partners is a private equity fund regulated by the CNMV. It invests in small and medium-sized enterprises facing challenges, unlocking special situations by providing financial resources and extensive operational support. It develops projects facing operational and financial challenges, focusing on operational transformations, refinancing, insolvency proceedings, divestment of non-strategic business units, and family businesses without generational succession.
More information at www.endurance.es
