Investment into Wierig: Unlocking scale to accelerate Germany’s energy transition

Germany is ambitious about its energy transition, especially for solar energy. The federal government aims to have 215 GW of solar capacity by 2030, more than a third of the total installation target for the European Union. To reach this goal, the rate of installation needs to triple from its 2022 figure.

Politicians are legislating to make it happen. Last August, the federal government unveiled a new solar policy package, while several states have made solar systems mandatory on new and refurbished buildings.

The second addition to the Vidia Climate Fund I portfolio is well positioned to succeed in this environment. Wierig Group (“Wierig”) is a leading service provider in the large industrial flat roofs sector. Based on its renowned expertise in the field of energetic roof maintenance and refurbishment, Wierig is also active in the installation of solar and other alternative energy systems.

Founded 130 years ago, Wierig employs about 210 people across five locations in Germany. Its geographic reach and combined expertise of refurbishment and installation make its services attractive to large blue-chip clients.

Driving decarbonization through solar installation and roof refurbishment

As is typical of Vidia’s investments, Wierig presents a decarbonization opportunity as well as a commercial one. Much of the execution needed to meet Germany’s energy transition ambitions will be done by the industrial sector. Wierig is well positioned to meet the growing demand for energetic refurbishment and solar installation and help Germany transition away from fossil fuels.

“For us, impact and returns go hand in hand,” says Johanna Struthmann, Founding Partner of Vidia. “With every additional roof refurbished and every solar panel installed by Wierig, the business scales and the amount of renewable energy produced in Germany increases. We’re looking forward to partnering with management and the current owners to take Wierig to the next stage.”

Wierig’s path to growth

Vidia’s growth strategy for Wierig is based on two pillars.

The first involves realizing untapped operational potential in the existing business. For example, adopting a structured sales approach will help increase the number of leads generated, while removing operational bottlenecks will create capacity to service more clients. There is also scope for complementing and adding second-level management to free up the C-suite to focus on strategy, business development and management of key accounts.

The second pillar is value creation through selected add-on acquisitions, aided by the fragmented nature of the roofing as well as the solar installation market. This could improve inorganic growth by boosting capacity, extending regional coverage and unlocking synergies.

“Germany’s energy transition is a massive opportunity for Wierig to grow as a business and play an even bigger role in decarbonizing the economy,” says Thomas Wierig. “Vidia is the entrepreneurial partner we need to make the most out of this moment. We’re confident Vidia’s experience and hands-on approach will help us achieve the scale we’re capable of.”