Alcedo backs Duplomatic's €27m SBO from Progressio

As part of the deal, Alcedo acquired a controlling stake in the business via its Alcedo IV fund, while the management team, led by CEO Roberto Maddalon, will retain the remaining stake and continue to lead the business. Moreover, Maddalon will become chairperson.

According to press reports, Italian lender Unicredit was bookrunner and mandated lead arranger alongside its peers Banco BPM, Crédit Agricole Cariparma and Interbanca, for an undisclosed credit facility to support the transaction.

Following the transaction, Alcedo and the management team expect the business to generate a turnover of €100m in four years.

The deal marks the fourth acquisition for Alcedo's 2015-vintage fourth fund, which held a final close on €195m in May 2016, as well as the fourth divestment for Progressio's second vintage, which hit its €205m hard-cap in July 2011.

Previous funding
Axa Private Equity – now known as Ardian – acquired an 85% stake in Duplomatic in January 2008.

Five years later, in April 2013, Milan-based VC house Progressio bought an 86% stake in the business via its Progressio Investimenti II vehicle from Axa PE.

According to a statement, during Progressio's ownership period, the company purchased four competitors, including the purchase of an 85% stake in Italian hydraulic cylinder manufacturer OCS from trade vendor CBM Group. It also expanded into the Chinese market. Furthermore, it saw its revenues increase from €45m in 2013 up to €70m in 2016.

Company
Established in 1952 and headquartered in Parabiago, near Milan, Duplomatic produces valves, pumps and cylinders for the oil and electronics industries. In 2016, the business posted a €70m turnover and currently manages seven production plants, which include five factories in Italy, one in the US and one in China.

People
Alcedo – Michele Gallo (managing partner); Marco Guidolin (partner).
Progressio – Alessandro d'Arco (investment director).
Duplomatic Oleodinamica – Roberto Maddalon (CEO).

Advisers
Equity – Studio Legale Gitti and Partners (legal); Deloitte (financial due diligence, tax); Simon-Kucher & Partners (commercial due diligence); CBA Studio Legale e Tributario (M&A).
Vendor – Raynaud Studio Legale (legal); Studio Russo De Rosa (tax); EY (financial due diligence); Long Term Partners (commercial due diligence).
Debt – Studio Legale NCTM (legal).

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