Assietta buys 87% stake in MMB Costruzioni Meccaniche
Italian buyout house Assietta Private Equity has acquired an 87% stake in MMB Costruzioni Meccaniche through its vehicle Ape III.
The founding family retained the remaining 13% stake.
According to a source close to the GP, Assietta took control of the company's management board and nominated a new CEO.
The source tells unquote", Assietta entered the business off-market, as the company was experiencing a light dip in performance caused by the macroeconomic contraction of the oil & gas market. Currently, the company generates 55% of its revenues from this market segment.
The GP took the opportunity to invest at a low entry multiple. According to the source, this strategy allows the PE house to aim for a 2-3x return on the capital invested. Indeed, the deal reflects the general strategy of the GP, which aims to invest in small-cap businesses with a three-year investment period.
Assietta intends to provide additional follow-on rounds to support the company's M&A expansion strategy.
The fund Ape III is now 60% invested and aims to deploy its last acquisition by May 2017, while the remaining dry powder will be held back for additional follow-on rounds. The vehicle held a final close on €45m in July 2015.
More recently, Assietta sold its portfolio company Aeromeccanica Stranich to the Italian private equity house Alcedo, reaping a 2x money return on the capital invested. According to a statement, the company was the last remaining investment of Assietta's vehicle Fondo MC2 Impresa.
Debt
According to the source, the GP arranged a senior debt package below a 2x multiple of the company's EBITDA.
Company
Founded in 1928 and headquartered in Solbiate Arno, Italy, MMB manufactures iron and steel forging products for industrial machinery across several sectors, including automotive, combustion engine and textile machinery.
The company employs 40 people and generated €8.6m in revenues in 2015 with a €1.2m EBITDA. It also expects to post a turnover of €10m in 2016 with a 15% EBITDA multiple.
People
Assietta Private Equity – Marco Cornaglia (founding partner, CEO); Riccardo Gasparini (investment director).
Advisers
Equity – KPMG (financial due diligence, tax); Bird & Bird (legal); Tauw (Environmental due diligence).
Company – Banca Intermobiliare (M&A); Alpeggiani e Associati (legal); NCTM (legal).
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