AXA Private Equity has signed a binding agreement with Progressio SGR, on behalf of the Fund Progressio Investimenti II, to sell its majority (88 per cent) stake in Duplomatic Oleodinamica.
Based in Parabiago, Milan, Duplomatic Group is a producer of hydraulic valves, pumps and oil-pressure activated systems which are mainly used in industrial applications for industries such as energy, machine tools, construction machineries, rubber and wood industry as well as naval and agricultural industry.
AXA Private Equity acquired the majority of the group in 2008 with the objective of strengthening its market position. The firm implemented a growth strategy, working alongside the management, based on refocusing on the core business and international expansion. In line with this plan, in 2011 AXA Private Equity helped Duplomatic acquire Continental Hydraulics, a US company with headquarters in Savage (Minnesota). In 2012, Duplomatic Group achieved a turnover of approximately EUR46m, 70 per cent of which was generated outside Italy, with an EBITDA of approximately EUR6.8m.
Progressio Sgr has been supported in the acquisition by the management of the company, led by chief executive Roberto Maddalon. The management will have a stake of more than 14 per cent.
Paolo Bergonzini, managing director and head of AXA Private Equity’s Italian small market enterprise capital team, says: "With our guidance, Duplomatic has executed an international growth strategy which has allowed the Group to double its sales within five years. In keeping with AXA Private Equity’s strategy, we used our international network to help the Group expand into new markets outside Italy."
Filippo Gaggini, chief executive and senior partner of Progressio SGR, says: "Duplomatic Group represents an excellence in the Italian mechanical industry. We are very pleased to be able to support a management team of high standing to proceed in the growth path that will continue the process of diversification, with the aim of strengthening its position in Northern Europe, China and the United States and also increase its product portfolio and services."
Roberto Maddalon, CEO of Duplomatic Oleodinamica, says: "I thank AXA Private Equity for its continued support over the last five years, which helped us achieve our ambitious growth targets. Now we are ready to face new challenges with the expertise and network of Progressio SGR."
