Mandarin invests €12m in Marval

Amedeo Goria
10 March 2016

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Mandarin Capital Partners has bought a minority stake in Italian mechanical parts and chassis components producer Marval.

Mandarin invested €12m in the business, part of which has been used to purchase an undisclosed amount of shares from the founders, with the remainder coming as a capital increase. As part of the deal, the GP committed an additional capital injection of €6m in case of further needs for business development within the next 18 months. Marval CEO Nicola Marchiando will continue to manage the company.

Speaking to unquote", Mandarin director Alberto Camaggi said the GP would use its networking channels in Asia and Europe to boost the company's presence on those continents. The GP intends to use its presence in China to secure new clients for the company, such as portfolio company Zoomlion, and to target several strategic acquisitions.

Marval controls a subsidiary company in China, ChangSha XiMai Mechanical Construction, which generates a higher turnover compared to the Italian company. The GP intends to exit the business to another private equity or a larger industrial group by 2020, at which point it expects the company to generate a turnover of €120m.

Mandarin financed the transaction through its Mandarin Capital Partners II fund. Camaggi said the fund had already invested €90m to date. The vehicle reached its final close on €200m in January 2016. Mandarin intends to start fundraising for its third vehicle in the second half of 2017.

Company
Headquartered in Castellamonte, near Turin, Marval produces mechanical components for commercial vehicles and luxury cars, including cylinder heads, gear parts, brakes and suspensions parts.

The business generated €50m in revenues in 2015 with a 20% EBITDA margin and expects a turnover of €60m for 2016. Marval employs 350 staff.

People
Mandarin Capital Partners – Alberto Camaggi (founding partner, director); Alberto Forchielli (managing partner).
Marval – Nicola Marchiando (CEO).

Advisers
Equity – EY (financial due diligence, tax); R&P Legal (legal); Roland Berger (commercial due diligence).