Aksia reaps 35% return on Robuschi exit

Susannah Birkwood
12 October 2011

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Italian private equity firm Aksia Group has achieved an IRR of more than 35% and a money multiple in excess of 4x on its sale of Robuschi, a manufacturer of blowers and pumps, to Gardner Denver.

Gardner Denver, a worldwide manufacturer of engineered products such as compressors, liquid ring pumps and blowers, paid €152m for a 100% stake (61.2% of which was held by Aksia).

The deal is dependent on regulatory approval being granted and is expected to close by the end of 2011.

Previous funding
Aksia acquired Robuschi from the founding family in February 2007. The €30m transaction included a reinvestment by the Robuschi family and the management. Interbanca and BNL provided leverage for the deal, which was formally managed by M&A adviser Fineurop Soditic.

The business plan consisted of sector consolidation and strengthening of trade links within Europe, the US, South America and China. Non-core production processes were to be outsourced, an emphasis was to be placed on R&D and Robuschi would procure more of its resources from low-cost countries. The private equity firm intended to hold the business for five years and exit via a trade sale or IPO. It took four seats on the company's board and appointed Antonio Robuschi, grandson of the company's founder, as chairman and CEO.

During the investment period, Aksia led the acquisition of two companies: one in Italy, to increase Robuschi's product offering, and one in Brazil, to increase the firm's penetration into high-growth areas. It also introduced energy efficient screw compressors into the market.

Company
Robuschi was founded by the eponymous family in 1941 in Parma. The company manufactures centrifugal and vacuum pumps, and rotary lobe blowers.

The company has increased its turnover from €50m in 2006 to €70m today, while its EBITDA has risen from €11m to €15.4m. It employs 330 people and 70% of profits originate from overseas exports to businesses from the packaging, industrial and pharmaceutical sectors, compared to just over 55% in 2007.

People
Nicola Emanuele from Aksia managed the transaction. Giovanni Robuschi was the principal founder of Robuschi. Barry L Pennypacker is the president and CEO of Gardner Denver.

Advisers
Equity – Baird, Nick Sealy (Corporate finance); Dewey & LeBoeuf, Francesco Cartolano (Legal); Deloitte (Financial due diligence).