RINA is to acquire the entire share capital of Edif Group Limited (Edif), a portfolio company of Phoenix Equity Partners (Phoenix), for GBP118.5 million (around EUR151 million).
The acquisition represents a further step towards the fulfilment of RINA’s broader growth strategy, which will increase its geographical coverage, and deliver a higher level of technical expertise for its customers. In particular, the acquisition of Edif will significantly increase RINA’s presence in the UK, alongside the US and German market, where the combination of the two groups will provide a platform for further expansion.
Edif is a leading worldwide provider of a diverse range of TIC-CE services that serve to reduce risk, optimise performance and enhance the capability of its clients’ assets. Edif is headquartered in London, UK, and employs approximately 650 employees and 2,500 associates in over 20 offices internationally. Edif was founded as a Group in 2011, and has grown rapidly since inception both organically and through acquisitions.
The Acquisition will be funded through an equity capital injection from RINA’s financial shareholders, VEI Capital (“VEI”) and NB Renaissance Partners (NBRP), alongside a new financing facility provided by BNL – BNP Paribas Italy, Unicredit Group, and Banca IMI.
RINA’s shareholders, its financial partners and Sace (an Italian organisation specialised in supporting companies planning to go international) will continue to support and accelerate the growth undertaken by the Group in recent years.
Completion of the Acquisition is subject to receipt of standard merger control clearances, with closing anticipated to occur during the second half of 2016.
Ugo Salerno, Chairman and CEO of RINA, says: “This acquisition is strategic and fits very well with RINA due to Edif’s profile in the energy, transport, defence, industry and infrastructure markets. Edif is also structured in a very similar way to RINA with two well-known brands, the ERA engineering consultancy and the NDE inspection business. Due to the complementary nature of the business, integration will be straightforward, resulting in a wider geographical footprint and immediate business gains. With this deal RINA’s turnover reaches about EUR500 million with an EBITDA close to EUR65 million. This will enable us to possibly go public in the medium term”.
Rob Dilworth, CEO of Edif, says: "I am proud to have co-founded and grown the Edif Group from a standing start over the last five years, alongside my colleagues in the Edif team and with the backing of Phoenix Equity Partners. Edif has grown to become a successful, international industrial TIC-CE business, and we believe there is a compelling strategic rationale for our combination with RINA. Our range of services and geographical footprint are both highly complementary to RINA’s existing operations, and we are very much looking forward to working together to drive the continued success of the enlarged group.”
Tim Dunn, Partner at Phoenix Equity Partners, says: "We are very proud of the strong partnership we have developed over several years with Rob and the rest of the Edif team. Edif has delivered on an ambitious plan to build an integrated, global business in the industrial TIC-CE sector. We believe there is strong strategic rationale for the combination of Edif with RINA, and that the combined entity is very well positioned for the future.”
