Capvis Equity sells Italy-based Faster to Sun Hydraulics

Alessia Argentieri
20 February 2018

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Swiss private equity firm Capvis Equity Partners has entered into a definitive agreement to sell its stake in Italian hydraulic couplings manufacturer Faster Group to US-based hydraulic and electronic components producer Sun Hydraulics Corporation.

The deal is valued at approximately $531m, which would equate to almost 15x the company's 2017 EBITDA.

According to Sun Hydraulics, the acquisition will be funded with approximately $161m of cash on hand and $370m drawn against the company's revolving credit facility. The transaction is expected to close in the second quarter of 2018.

With the fresh capital, Faster intends to diversify its product offering, expand its market penetration and maximise the use of Sun Hydraulics' existing manufacturing capacity.

Previous funding
The deal ends a four-year holding period for Capvis Equity, which acquired the company in 2014 from Argan Capital, using its Capvis Equity Partners IV fund for the transaction. Although the value was not officially disclosed, the deal was thought to be worth around €210m and supported by a €98m senior debt package provided by UniCredit, Societe Generale, Banca IMI and IKB, according to Unquote Data.

Argan bought an 82% stake in the business in 2007 from the Star Social Responsible Fund, managed by Efibanca Palladio Finanziaria, for around €135m. Unicredit underwrote a €95m senior debt package comprising one amortising and two bullet tranches, according to Unquote Data.

Company
Founded in 1952 and based in Rivolta d'Adda, near Milan, Faster is a manufacturer of quick-release hydraulic couplings for the agricultural and construction equipment sectors. The company employs 475 people and in 2017 recorded sales of €105m, with an adjusted EBITDA margin of 27.5%. In 2018, the company anticipates revenue growth of 16-16.5% with an EBITDA margin in the same range as 2017. Faster has manufacturing operations in Italy, Spain, India and the US, and sales offices in China, Brazil and Germany.

People
Sun Hydraulics – Wolfgang Dangel (president, CEO).
Capvis Equity Partners – Eric Trueeb (partner).

Advisers
Sun Hydraulics – Baird (corporate finance); Shumaker Loop & Kendrick (legal); Pavia e Ansaldo (legal).