Alcedo buys 47% of Stranich from Assietta for €10m

The deal sees Alcedo acquiring its minority stake in the Italian dust control equipment maker through its 2015-vintage Alcedo IV fund. As part of the deal, the company's CEO and majority shareholder, Andrea Ferroni, will retain his position with the business, while Alcedo partner Michele Gallo will join the company's board.

A source close to Alcedo tells unquote", Assietta was looking for the right exit strategy, while the management team was keen on putting in place a mid-term development plan for the business. Against this backdrop, the placement agent Next Advisors contacted Alcedo for an acquisition off-the-market.

According to a statement, the GP intends to boost the company's expansion both through a renewed marketing strategy and via strategic acquisitions across Italy and Europe, where the management team has already identified a few opportunities, as well as China, India and Iran. The latter is a particularly interesting market for the Italian company, says the source.

The recent change in trading relations with Iran has opened up the market for suppliers of the oil and gas industry and Stranich intends to enter the market, explains the source.

The GP did not use leverage to support the transaction but debt may be used in the future to boost strategic acquisitions.

The deal marks the third investment for the GP's fourth fund, which held a final close on €195m in May 2016.

Previous funding
Assietta – formerly known as Intermonte Bcc Private Equity – acquired the 47% stake in the business via its MC2 Impresa vehicle in 2013. According to a statement, the GP reaped a 2x money multiple. The MC2 Impresa fund is now fully divested.

Company
Founded in 1928, Stranich manufactures heavy-duty centrifugal fans and dust control equipment for the petrochemical, power and steel industries. Moreover, the business develops a control system for pollutants and dusty gases.

The company is headquartered in Sesto San Giovanni and has also a presence in Piotello, near Milan. It generated €24.8m in revenues in 2015 with a €3m EBITDA value, compared to €21.7m in revenues and €2.3m EBITDA in 2014. Stranich employs a staff of 50.

People
Alcedo – Maurizio Masetti (managing partner, chair); Michele Gallo (partner).
Assietta Private Equity – Stefano Lissoni (director).
Aeromeccanica Stranich – Andrea Ferroni (CEO).

Advisers
Equity – Next Advisors (corporate finance); Gitti and Partners (legal); Deloitte (financial due diligence, commercial due diligence); Studio Legale Tributario Russo De Rosa e Associati (tax).
Vendor – Simmons & Simmons (legal).
Management – Dentons (legal); Crowe Horwath (tax).

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• Topics
• Expansion
• Industrials
• Southern Europe
• Italy
• Alcedo SGR