Creates Global Forged Products Platform
Marks Second Mid-Cap Fund Acquisition in Italian-based Company
KPS Capital Partners, LP (“KPS”) announced today that it has signed a definitive agreement to acquire Siderforgerossi Group, S.p.A. (“Siderforgerossi” or the “Company”), a global manufacturer of large diameter forged products. Upon completion of the transaction, Siderforgerossi will become the fifth acquisition completed by KPS Special Situations Mid-Cap Fund (the “Mid-Cap Fund”) and KPS’ second Mid-Cap Fund acquisition in Italy in 2021.
The Manufacturing Spectrum
Siderforgerossi is a leading, vertically integrated manufacturer of rolled and forged products with capabilities across the manufacturing spectrum, including ring-rolled, open die and closed die forging capabilities. The Company is specialized in large diameter forged products and primarily serves the Wind Power, Oil & Gas, Earth Moving, Automotive, Conventional & Nuclear Power Generation and Aerospace end-markets across Europe and India. Siderforgerossi provides customers with a vertically integrated offering including heat treating, destructive and non-destructive testing and machining. The Company is headquartered in Veneto, Italy and operates nine manufacturing sites in Italy and three additional sites in India.
Mid-Cap Investments
Ryan Harrison, a Partner of KPS Mid-Cap Investments (“KPS Mid-Cap”), said, “Siderforgerossi is a market leader with unmatched manufacturing capabilities and a differentiated quality control and customer service track record. We are excited for this investment to form the basis of a global forged products platform that KPS and the Siderforgerossi team intend to grow both organically as well as through acquisitions. We look forward to working with Chief Executive Officer Adriano Zambon, the Company’s talented management team and dedicated employees to accelerate growth opportunities and create value by leveraging KPS’ very successful, multidecade experience in investing in the metals and forged products industries.”
Record of Driving Manufacturing
Adriano Zambon, Chief Executive Officer of Siderforgerossi, said, “We are excited to operate under KPS’ ownership as the Company enters this next phase of development. KPS’ demonstrated track record of driving manufacturing excellence will position Siderforgerossi to capitalize on meaningful growth opportunities, while maintaining our focus on quality, safety and customer service. Under KPS’ ownership, we will develop a range of growth and operational initiatives to build upon our long and successful history.”
Financial terms of the transaction were not disclosed. Intesa Sanpaolo S.p.A. – IMI Corporate & Investment Banking Division served as lead financial advisor, Houlihan Lokey served as debt capital markets advisor, and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to KPS.
Mediobanca – Banca di Credito Finanziario S.p.A. served as lead financial advisor and NTCM Studio Legale served as legal counsel to selling shareholders of Siderforgerossi and to the Company.
About Siderforgerossi Group
Siderforgerossi is a leading, vertically integrated manufacturer of rolled and forged products with capabilities across the manufacturing spectrum, including ring-rolled, open die and closed die forging capabilities. The Company is specialized in large diameter forged products and primarily serves the Wind Power, Oil & Gas, Earth Moving, Automotive, Conventional & Nuclear Power Generation and Aerospace end-markets across Europe and India. Siderforgerossi provides customers with a vertically integrated offering including heat treating, destructive and non-destructive testing and machining. The Company is headquartered in Veneto, Italy and operates nine manufacturing sites in Italy and three additional sites in India.
About KPS Capital Partners
KPS, through its affiliated management entities, is the manager of the KPS Special Situations Funds, a family of investment funds with approximately $12.8 billion of assets under management (as of March 31, 2021). For nearly three decades, the Partners of KPS have worked exclusively to realize significant capital appreciation by making controlling equity investments in manufacturing and industrial companies across a diverse array of industries, including basic materials, branded consumer, healthcare and luxury products, automotive parts, capital equipment and general manufacturing.
KPS Values
KPS creates value for its investors by working constructively with talented management teams to make businesses better, and generates investment returns by structurally improving the strategic position, competitiveness and profitability of its portfolio companies, rather than primarily relying on financial leverage. The KPS Funds’ portfolio companies have aggregate annual revenues of approximately $10.9 billion, operate 149 manufacturing facilities in 22 countries, and have approximately 35,000 employees, directly and through joint ventures worldwide.
KPS Investments
KPS Mid-Cap focuses on investments in the lower end of the middle market that require up to $100 million of initial equity capital. KPS Mid-Cap targets the same type of investment opportunities and utilizes the same investment strategy that KPS’ flagship funds have for nearly three decades. KPS Mid-Cap leverages and benefits from KPS’ global platform, reputation, track record, infrastructure, best practices, knowledge and experience. The KPS Mid-Cap investment team is managed by Partners Pierre de Villeméjane and Ryan Harrison, who lead a team of experienced and talented professionals.
