Mid-market private equity firm Quadrivio Group has acquired a majority stake in Italy-based rotational moulding business Rototech.
Unquote understands that the deal values the company at €30m, which equates to 5.5x its 2018 EBITDA of €5.5m.
Quadrivio bought a 60% stake in the company from the founding Accornero family, who reinvested alongside the GP and retained the remaining 40% in the business.
This is the second investment made by Quadrivio via its Industry 4.0 fund, following its acquisition of restaurants and bars operator Nabucco, inked in June. The fund held a first close on €100m in October 2018, has raised €150m so far and expects to hit its €300m target by Q1 2020, Unquoteunderstands.Rototech president Oreste Accornero will stay on with the company in his current role, while a new CEO will be appointed by Quadrivio to lead the management and direct the new business plan.
In addition to the equity drawn down from the fund, a debt package was provided by Banco BPM to support the deal.
Quadrivio plans to further boost Rototech’s growth and strengthen its market position, primarily in France, India, Russia and China, where the company already has a strong presence. In addition, the GP intends to expand the business to the US market, possibly via a strategic bolt-on in the coming months.
Established in 1916 and headquartered in San Gillio, near Turin, Rototech specialises in plastic rotational moulding. The company manufactures tanks, dashboards, air intake components, fan covers and compressors’ hard tops for the automotive industry, primarily for trucks and vehicles used in agriculture and construction.
The company employs 450 staff and serves international clients, including Caterpillar, Cummins, Renault-Volvo, CNH, DAF and Daimler. It generated EBITDA of €5.5m from revenues of €60m in 2018, of which 90% came from outside Italy.
Quadrivio Group – Walter Ricciotti (CEO); Roberto Crapelli (managing partner of Industry 4.0); Alessandro Binello, Walter Ricciotti Pietro Paparoni (investment directors).
Rototech – Oreste Accornero (president).
Equity – Studio Accinni Cartolano e Associati (legal); Studio Russo De Rosa Associati(tax); Roland Berger (corporate finance); KPMG (financial due diligence).
Company – K Finance (corporate finance); NCTM (legal); Deloitte (financial due diligence).