Milan, March 14th 2017 – Alcedo SGR, through its Alcedo IV Fund, invests € 27 million in Duplomatic Oleodinamica, a leading company in the design, manufacturing and marketing of valves, cylinders, pumps and systems for the hydraulics market, along with electromechanical products.
It is the fourth investment for Alcedo IV Fund and the fourth divestment for Progressio Investimenti II Fund
Alcedo bought its stake from Progressio, which held it since 2013 through its Progressio Investimenti II Fund. Roberto Maddalon, CEO and shareholder of Duplomatic Oleodinamica (together with Francesco Ferrari, Group’s CFO, and other managers), will continue to lead the company and will be appointed Chairman, confirming its full involvement in the management of the business.
With a turnover of € 70 million, Duplomatic Oleodinamica runs five production sites in Italy, one in the United States and one in China. The Group was established in 1952 and began its activity developing mechanical systems for machine tools; during the sixties, it focused on the manufacturing and marketing of components and hydraulic systems for the industry sector. More recently it entered the promising market of the electrical actuators. Lately, the Group grew constantly abroad, both organically and through targeted acquisitions which made Duplomatic Oleodinamica a truly global firm.
This is the fourth exit for Progressio Investimenti II Fund, with a total size of € 205 million; Progressio has recently launched the fund raising of its new Progressio Investimenti III vehicle, with a target set at € 225 million. This is also the fourth investment of the Alcedo IV Fund managed by Alcedo SGR, which has raised € 195 million following its final closing in May 2016.
Alcedo will support Duplomatic Oleodinamica in its geographical and commercial expansion strategy through both organic growth and strategic acquisitions in Italy and abroad.
“Duplomatic is a typical Progressio investment: a company with a great potential and a strong management team, which we transformed from follower to innovator by assembling a 40 people R&D team and supported in its strategy of growth with four acquisitions and a new manufacturing site in China” – said Alessandro d’Arco, Progressio’s Investment Director who followed the investment.
Roberto Maddalon, Chairman and CEO of Duplomatic Oleodinamica commented: “Through the holding period of Progressio, Duplomatic Oleodinamica achieved a significant growth, which brought its turnover from € 45 million to € 70 million. Given the promising market landscape, the Group aims to get to € 100 million in the next four years through organic growth only, not considering the possibility to exploit the several interesting M&A opportunities offered by the market”.
Michele Gallo, Managing Partner of Alcedo, said: “Duplomatic Oleodinamica is an Italian champion which competes successfully on a global scale, with a multinational profile, a highly skilled management team and a strong vocation to export. This investment fits perfectly with our strategy of investing in leading Italian SMEs having a considerable
potential for growth”.
For Alcedo, the deal was followed by the Partners Michele Gallo and Marco Guidolin. Alcedo was assisted by Stefano Roncoroni, Angelo Gitti, Daniele Cusumano, Jessica Fiorani e Andrea Imberti, of Studio Legale Gitti and Partners, for legal matters. Deloitte took care of the financial and fiscal Due Diligence while Diego De Francesco and Francesca Marchiori, of CBA Studio Legale e Tributario, were responsible for structuring the deal. Francesco Fiorese of Simon-Kucher & Partners performed the Business Due Diligence.
For Progressio, the deal was followed by Filippo Gaggini, Managing Partner, and Alessandro d’Arco, Investment Director. Progressio was assisted by Daniele Raynaud, Barbara Degli Esposti and Federica Bulla of Raynaud Studio Legale, and by Leo De Rosa of Studio Russo De Rosa. Lorenzo Astolfi, Marcello Rizzo, Andrea Baglioni and Vincenzo Scotto of Alantra acted as financial advisors.
The acquisition was backed by UniCredit as Sole Bookrunner, Mandated Lead Arranger and Agent, and Banco BPM S.p.A., Crédit Agricole Cariparma and Interbanca S.p.A. as Mandated Lead Arranger. The financing banks were assisted by Eugenio Siragusa, Partner of NCTM Law Firm.
The acquisition was followed by notary Giovannella Condò, Milano Notai.