Mandarin Capital Partners (MCP) alongside Atlante Private Equity, the founding families and other minority shareholders, is to sell the entire share capital of Hydro Holding SpA (The Group) to NB Renaissance Partners (NBRP).
The Vaghi, Facondini, Cerase and Brivio families (founding families) reinvested a minority interest and will retain management roles in the Group.
Hydro Holding is a leading player specialised in the manufacturing of fittings and hoses for the hydraulic sector and is the result of the business combination of four leading Italian companies: (i) Tieffe, acquired in 2015, is engaged in the production of carbon steel fittings; (ii) FB, acquired in 2015, specialises in the manufacturing of hose fittings; (iii) MCS Hydraulics, acquired in 2017, is engaged in the production of stainless steel fittings; (iv) Raccorfer, acquired in 2017, is a cold forming technology specialist.
The Group operates through four production plants, three of which in Italy, and branches in Europe and US, with a total workforce of over 300 people. Hydro Holding has a comprehensive product offering, and a complete range of technologies, with main application in agriculture, construction, mining, material handling and transportation industries. The Group enjoys an international presence by serving over 60 countries worldwide and approximately 80 per cent of revenues generated abroad.
Hydro Holding experienced a strong growth in recent years, thanks to MCP support and ability to put together complementary assets, from ca. EUR 40 million of revenues in 2016 to approximately EUR60 million expected for 2018, with an EBITDA margin of circa 25 per cent.
Mandarin Capital Partners, Atlante Private Equity and other selling shareholders have been advised by GCA Altium and Fineurop Soditic (financial), LMCR (legal), Roland Berger (commercial), PwC (accounting), STS Deloitte (tax) and ERM (environmental, health and safety).
As of today, MCP has completed 8 investments and has already divested four of them profitably, of which three were in 2018. This represents the fifth exit for MCP’s second fund, Mandarin Capital Partners II (MCP II). MCP II, launched in 2013 with a commitment of EUR 195 million, is a Private Equity fund backed by a number of blue-chip Italian and international institutions, investing in niche leading, export-oriented mid-sized Italian companies that can benefit from international expansion.
