
Investindustrial acquires CEME from Investcorp for €280m
Investindustrial has acquired Italian pump and valve manufacturer CEME Group from Investcorp for €280m.
The new GP will own 97% of the company, with the remainder held by management.
The deal was valued at €280m and supported by a €130m all-senior debt package provided by a group of banks. Given EBITDA is in the €30m range, implied leverage for the deal is 4.3x, according to a person familiar with the situation.
CEME is expected to generate revenues in excess of €150m in 2017.
The next phase of growth will focus on further international expansion and the development of new value-added components for high-growth end markets.
Previous funding
Investcorp acquired CEME in 2008 from Barclays Private Equity (which had bought it in 2005). The group refinanced its debt package in March 2016 with a €100m all-senior package provided by Commerzbank, ING and Unicredit, allowing the fluid control system group to save on interest payments by taking out the junior debt in its capital structure, according to unquote" sister publication Debtwire.
Company
CEME is headquartered in Trivolzio and manufactures high- and low-pressure pumps, brass and plastic valves, pressure switches and flow meters that enable controlling the passage of any type of fluid. The company serves niche applications in end markets such as single-serve coffee machines – which currently account for the majority of revenues – beverage vending machines, water-dispensing and air-conditioning units, and medical devices.
People
CEME Group – Roberto Zecchi (CEO).
Advisers
Investindustrial – Studio Legale Chiomenti (legal); PwC (financial due diligence, tax); Boston Consulting Group (commercial due diligence); UniCredit (M&A).
Latest News
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme
Multi-family office has seen strong appetite, with investor base growing since 2016 to more than 90 family offices, Meiping Yap told Unquote
Permira to take Ergomed private for GBP 703m
Sponsor deploys Permira VIII to ride new wave of take-privates; Blackstone commits GBP 200m in financing for UK-based CRO
Partners Group to release IMs for Civica sale in mid-September
Sponsor acquired the public software group in July 2017 via the same-year vintage Partners Group Global Value 2017
Change of mind: Sponsors take to de-listing their own assets
EQT and Cinven seen as bellweather for funds to reassess options for listed assets trading underwater