Eltel Networks Oy
Nature of business
Eltel Networks designs, builds, maintains and enhances electricity, telecommunications, railway, aviation, public safety and enterprise networks. It is the leading provider of infranet services in northern Europe and its offerings ensure uninterrupted signal and electricity supply to its clients. The business is headquartered in Espoo, Finland and currently operates in Finland, Sweden, Norway, Denmark, Poland, Latvia, Lithuania, Estonia, Germany, the UK and a number of export markets. It employs c.8,500 employees.
3i and funds managed by 3i invested in Eltel in June 2007. The business which was borne of a highly active acquisition strategy had created a substantial opportunity for operational improvement. Since our investment, a core element of the business strategy has been to drive performance by streamlining the organisational structures and processes and fully integrating past acquisitions.
Since our investment we have introduced our Active Partnership approach to drive a comprehensive strategic change plan, involving several operational improvements. These have included rationalising the generalist structure of the workforce into teams specialised by activity for higher productivity and service quality; reversing a ‘top down’ and top-line focused culture by empowering and incentivising the field organisation through the creation of c.400 local profit centres/teams; and introducing uniform reporting for all teams with clearly defined KPIs linked to stronger incentives.
We have also reviewed key operational levers and have significantly reduced organisational overheads through improved internal processes, reporting and increased managerial spans of control.
Regulatory notice: This transaction involved a recommendation of 3i Investments plc, advised by 3i Amsterdam.
3i office contact
PO Box 7847
103 99 Stockholm
Engelbrektsplan 1 (T-House)
114 34 Stockholm
Tel: +46 (0)8 506 101 00
Fax: +46 (0)8 506 211 30