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Progressio sells Duplomatic Oleodinamica to Alcedo SGR
Milan, March 14, 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.
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 Alcedo’s 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 1960s, the Group focused on the manufacturing and marketing of components and hydraulic systems for the industry sector. More recently, it entered the promising market of electrical actuators. Lately, the Group expanded abroad, both organically and through targeted acquisitions, making Duplomatic Oleodinamica a truly global firm.
This is the fourth exit for Progressio Investimenti II Fund, with a total size of €205 million; Progressio recently launched the fundraising 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, having raised €195 million following its final close 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 person 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 reach to €100 million in the next four years through organic growth alone, without 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 that 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 Partners Michele Gallo and Marco Guidolin followed the deal. For legal matters, Stefano Roncoroni, Angelo Gitti, Daniele Cusumano, Jessica Fiorani e Andrea Imberti of Studio Legale Gitti and Partners assisted Alcedo. 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, Filippo Gaggini, Managing Partner, and Alessandro d’Arco, Investment Director, followed the deal. Daniele Raynaud, Barbara Degli Esposti, and Federica Bulla of Raynaud Studio Legale, along with Leo De Rosa of Studio Russo De Rosa assisted Progressio. 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. Eugenio Siragusa, Partner of NCTM Law Firm, assisted the financing banks.
Notary Giovannella Condò, Milano Notai, followed the acquisition.
Progressio SGR S.p.A., established in 2005, is a private equity firm focused on Italian SMEs. It is an independent company, entirely owned by the management team and led by Filippo Gaggini (Managing Partner), Angelo Piero La Runa (Partner) and Nino Mascellaro (Partner). The investment strategy aims to invest in "hidden champions" in market niches where Made in Italy is a competitive advantage in terms of know-how and market positioning. The goal is to support the portfolio companies in a value creation path through organic growth, M&A strategy, and meanwhile strengthening the management organization.
Alcedo SGR S.p.A. is an independent private equity firm, controlled by its management, and is one of the leading players in growth capital investments in Italy. The Alcedo team has been working together in private equity for more than 25 years, applying a strategy of not only capital investment but also an operational approach aiming to create strategic partnerships with entrepreneurs and managers to assist in growing their companies. The firm invests in Italian SMEs, focusing on Italian excellence without favouring specific sectors.
Cebile Capital serves as Progressio’s private placement agent for the Progressio Investimenti III Fund.