PE-backed Hydro Holding buys Raccorfer

The deal saw Hydro Holding fully acquire the business using debt facilities provided by Bper Banca and Iccrea BancaImpresa, according to a source close to the matter.

The deal does not concern the company's building, unquote" understands. Further details surrounding the all-debt transaction remain undisclosed.

Currently, Imi retains a 20% stake in Hydro Holding, while Mandarin holds more than 50%, according to the source. Mandarin invested in the newco through its second vehicle, Mandarin Capital Partners II, which held a final close on €200m in December 2015 and is now 60% deployed.

Previous funding
Hydro Holding was created by Mandarin in December 2014 in order to complete the SBO of Tieffe from private equity firm Opera.

In September 2015, Hydro Holding also acquired Italian hydraulic components manufacturer FB Hydraulic. Following the deal, Imi Fondi Chiusi acquired a 20% stake in Hydro Holding. According to a statement, the newly formed group generated €40m in revenues at the time.

Company
Founded in 1978 and based in Lecco, Raccorfer produces steel components for the industrial sector, including the auto parts, motor, taps and fittings segments.

The company has 15 employees and generated €2m in revenues in 2016.

People
Mandarin Capital Partners - Alberto Camaggi (co-founding partner); Gabriele Salvemini (senior analyst).

Advisers
Equity – LMCR (legal).
Debt – Pedersoli (legal).

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• Topics
• Portfolio management
• Industrials
• Southern Europe
• Italy
• Mandarin Capital Management SA
• Build-up