INDUSTRY 4.0 FUND INVESTS IN TECNOTRI
A new investment for the Quadrivio Group private equity fund. Rototech now holds the majority stake in Tecnotri, a Brazilian company specialized in manufacturing plastic containers using roto-moulding technology.
Through Rototech, Quadrivio Group has become the main stakeholder in Tecnotri Indústria de Plásticos Ltda ‒ a Brazilian firm specialized in manufacturing plastic containers made with rotational moulding technology.
Since 2019 Rototech has been one of the six portfolio enterprises for Industry 4.0 Fund ‒ the Quadrivio Group private equity apparatus that invests in technological innovation and the digital transition of SMEs. Rototechis specialized in producing AdBlue and fuel tanks as well as air intake systems and other parts for industrial vehicles, farming machinery and earth-moving machines. With its head office in San Gillio (Turin), today Rototech has a noticeable international presence with production plants in Italy, France, India and Russia, alongside a prominent partnership in China. This new add-on operation further confirms the company's vocation for exports, strengthening its international market presence and expanding its product range.
In 2021 Rototech also acquired the majority stake in Carbon Cylinder: this innovative start-up is specialized in manufacturing carbon fibre-wrapped plastic cylinders for storing technical and medical gases, and has been producing type-4 carbon cylinders too as of last September. Rototech's growth strategy also sees inclusion of a new CRO and Salvatore Mazzarella (from Leonardo) on the board of directors.
A Brazilian company with production premises in the state of Rio Grande do Sul, Tecnotri specializes in making plastic containers with rotational moulding technology for industrial uses such as material handling and storage of agricultural materials. The enterprise develops bespoke products for its clients thanks to its co-design approach that enables it to create items of a specific shape and size. Turnover in 2021 was €5 million, almost doubling the €2.7 million of 2019, with a EBITDA margin of 30% ‒ equal to €1.5 million ‒ and therefore showing good profitability and a large capacity for growth and development.
Rototech will share its know-how in the automotive truck and farming machinery sector with Tecnotri, thus expanding its production capacity with investments in machinery and equipment aimed at meeting the needs of its Brazilian clientele. Rototech has already gained new orders, which are currently handled in Italy but will be transferred to the new subsidiary in the coming months. The nearness of the manufacturing plant will enable a higher profit margin and quality of service. This takeover opens up the Brazilian automotive market to Rototech, with an impact in terms of turnover and a return of over 20%.
Leonardo Segatt, founder and chairman of Tecnotri, will keep his minority share in the enterprise. The current frontline management team will continue to lead the company along its path in growth, but within the framework of a solid international group.
“Quadrivio's Industry 4.0 Fund is continuing in its backing to its portfolio enterprise Rototech after expansion into the hydrogen sector through Carbon Cylinder, this time playing a central role in shortening the value chain," Roberto Crapelli, Managing Partner at Industry 4.0 Fund, explained. He added: “In fact, taking over Tecnotri ‒ a Brazilian firm operating in plastic components made using the rotational process ‒ means it can now supply its own clients' Brazilian factories (as OEM) from close at hand. Despite the difficult economic period, Rototech has recorded a 15% increase in turnover for the first 8 months of 2022, confirming the competitiveness of its choices in technologies and the products themselves.”
Leonardo Salazzari, CEO of Rototech, commented on the transaction: “We're glad to be able to bring a young innovative company such as Tecnotri into our business group. Today the South American truck and farming market offers numerous opportunities, and Rototech intends to take advantage of these right from the start, through this new acquisition that comes in the wake of the Carbon Cylinder one. The deal will also launch the group in the sustainable mobility world, making its own strategy even more relevant and interesting.”
"Tecnotri has stood as a leading Brazilian entity in rotational moulding for over 20 years now. Today we are extremely pleased to announce that the company is part of the Rototech European family as of 2022. This global operation sees us extend our product range that, starting in 2023, will include a broad selection catering to the automotive sector," stated Leonardo Segatt, founder and Board Chairman of Tecnotri. “This will take us to grow with Rototech, which is already present in countries such as Italy, France, China, Russia and India. We stress that the entire operative framework in Brazil, including the production plant in Vila Maria (RS) and the distribution hubs in Campinas (SP) and Jaboatão dos Guararapes (PE), will be expanded, keeping the same management team."
The Rototech and Industry 4.0 Fund teams were assisted in setting out the key aspects of the contract by the law firm Vincenzi Advogas (Fabio Vincenzi and Marlano Silva Goulart). The financial and tax due diligence were carried out by the São Paulo office of Deloitte & Touche (Nivaldo Meldo and Andre Bastos). Instead, Tecnotri was supported by Nash Advisory (Giovanni Panigada, Roberto Simonato and Simone Giarratana) as deal advisor for the transaction.