FII acquires Fonderie di Montorso

Alessia Argentieri
19 December 2018

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Fondo Italiano d'Investimento (FII) has acquired a majority stake in iron casting specialist Fonderie di Montorso from the Comello family in an all-equity deal.

The GP deployed capital from Fondo Innovazione e Sviluppo, which has a €700m target, and held a €150m first close in September 2017 and a €275m interim close in July 2018. The vehicle was launched by FII in 2017 alongside a VC fund named FII Tech Growth, following the decision to sell its whole portfolio to Neuberger Bergman.

This is the second investment made by the fund, following the acquisition of a majority stake in mechanical components manufacturer Marval in October 2018.

The Comello family, who bought Fonderie di Montorso in 2010, retained a significant minority stake in the business and will continue to lead the company.

The GP intends to support the management in this new phase of growth by expanding the business in Italy and internationally, and by targeting additional acquisitions to create a pool of Italian companies specialising in iron casting.

Company
Established in 1962 and based in Montorso Vicentino, Fonderie di Montorso is an iron casting specialist that produces machinery components for the hydraulic, automotive and agriculture industries. The company completed a bolt-on in 2016 by acquiring Crevalcore-based Fondmatic, a foundry specialising in ductile iron and spheroidal graphite iron casting for the hydraulic industry.

Fonderie di Montorso employs a staff of 400 people, operates two production facilities located near Bologna and Vicenza, and expects to generate revenues of €90m in 2018.

People
Fondo Italiano d'Investimento – Carlo Mammola (CEO).
Fonderie di Montorso – Patrizia Comello (CEO).

Advisers
Equity – Studio Pedersoli (legal); Roland Berger (corporate finance); Deloitte (financial due diligence); Pirola Pennuto Zei e Associati (tax); Greenwich (commercial due diligence).
Company – Corporate Advisory Group UBS (corporate finance); Allen & Overy (legal).