Alcedo exits Duplomatic in trade sale to Daikin Industries

Wahida Ahmed
29 April 2022

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Private equity firm Alcedo has announced the sale of Milan-based Duplomatic, a hydraulic equipment manufacturer, to Japanese conglomerate Daikin Industries.

The acquisition, which is due to complete in June, values the pumps and valves manufacturer at EUR 220m (YEN 27.5bn), according to a press release.

Treviso-based Alcedo acquired an 80% stake in Duplomatic in 2017 from Progressio for EUR 27m through Alcedo IV fund, which held a final close on EUR 195m in May 2016, according to reports at the time. The vehicle closed its investment period in September 2021, according to the GP.

Duplomatic will seek to harness Daikin's global reach and strengthen the company's energy-saving hydraulics operations, particularly in Europe due to the market's desire for carbon neutrality in industrial sectors, according to the press release.

During Alcedo's ownership, Duplomatic has made strategic acquisitions including those of UK-based Hydreco Group and Germany-based Guenter Till & Co KG Praezisionsmechanik.

According to the press release, at the time of Alcedo's entry the company had EUR 70m in revenues and operated in only three countries. The business now has sites in the UK, Germany, Australia, China, and India and current revenues are at more than EUR 147m.

The sponsor's latest vehicle, Alcedo V, was launched in July 2020 with a target of EUR 215m and a hard-cap of EUR 230m, according to Unquote Data. The fund initiated its investment period in September and expects to hold a final close in June 2022 above target, according to the GP.

The vehicle targets Italy-based companies, with a focus on SMEs in Northern and Central Italy. The sponsor can provide equity cheques in the range of EUR 5m-25m, according to its website.

Company
Duplomatic is headquartered in Parabiago, Italy, and was founded in 1952. It manufacturers valves, actuators, pumps, and other systems for the hydraulics market. Its products are used across mobile and industrial automation applications including construction and agricultural equipment.

People
Alcedo – Michele Galo, Marco Guidolin (partner), Gioia Ronchin (investment analyst).
Duplomatic – Roberto Maddalon (CEO).

Advisers
Vendor – DC Advisory (M&A); Gitti and Partner (legal).
Equity – Bankhaus Metzler (M&A); Nishimura & Asahi and Gianni & Origoni (legal).