Motovario

Synergo SGR S.p.A., together with the other selling shareholders, including management, signed today a binding agreement to sell 100% of the share capital in Motovario S.p.A. to TECO Electric & Machinery Co., for a total consideration of €187 million. 

The transaction is part of TECO’s strategy to extend its operations from standalone products to system products and increase its European presence. Transaction closing is subject to the obtainment of the necessary clearances from the Antitrust Authorities and the clearance (foreign investment approval) from the Investment Commission, the Ministry of Economic Affairs, of the Republic of China (ROC).

Founded in 1965, Motovario is based in Italy and produces mainly gear reducers, motors, and other power-transmission products, notably worm gears for which it is a top tier player in the world. In 2014, Motovario recorded consolidated net sales of €113 million and EBITDA of €19 million. The company has highly automated manufacturing facilities in Italy and Spain, as well as 150 sales agents in 60 countries. In 2014, the company also acquired Pujol, an established gear-reducer manufacturer, in Spain, greatly expanding its business scope.

With this transaction, TECO will extend its operations from motors to power transmission systems, marking a stride in the company’s development roadmap. As such, TECO will not only provide customers complete industrial drive solutions, but also tap the huge potential for smart and automated production, heralding its inroad into the realm of industry 4.0.

The complete sales network and solid margin of Motovariowill facilitate the expansion of TECO’s operations into Europe; at the same time, Motovario will extend its reach into Southeast Asia, through the assistance of TECO’s sales network in the region.

Maurizio Negro, CEO of Motovario, said: “We are all incredibly excited about this transaction and I am convinced that TECO will strengthen the growth path of Motovario favouring further market expansion, especially in the Southeast Asia, developing significant synergies in research and products development, whilst enhancing the investments the group has made in production processes.”

Alessandra Gavirati, Partner at Synergo, said: “I am extremely satisfied as this transaction represents not only an excellent return for the Fund, but also an extraordinary growth opportunity for Motovario, as TECO is the idealpartner to strengthen Motovario’s presence on international markets, and will contribute to a further expansion of the Italian excellence abroad.”

 

Advisors

Synergo and the other selling shareholders, including management, were assisted in the transaction by Citi as financial advisor, and by d'Urso Gatti Pavesi e Bianchi law firm as legal advisor, with name partner Carlo Pavesi and partner Diego Riva.