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Green Arrow-backed TFM Automotive & Industry acquires Spiral Ingranaggi

Green Arrow Capital SGR, on behalf of Private Equity Fund 3 has executed the first add-on for its portfolio company TFM Automotive & Industry SpA, acquiring the 100 per cent of Spiral Ingranaggi Srl.

The company, specialising in the production of small and medium-sized gears, both cylindrical and conical, with straight, helical and spiral toothing used for adaptors, machinery and transmissions, represents the perfect fit for TFM Group, one of the main European producers active in manufacturing high precision machined components for the Automotive, Cycle and Oil & Gas sectors.
Spiral, founded in 1994 by the engineer Massimo Ronconi in Pernumia (Padua), has distinguished itself, in the production of small and medium-small gears, thanks to some distinctive features such as product know-how and co-design, production experience, quality and reputation.
The company, in one production site with about 40 employees, achieved in 2017 a turnover of approximately EUR9.3 million, with a significant marginality which has stimulated the interest of the Private Equity 3 Fund and TFM as the perfect counterparty with which to create productive and commercial synergies and an incremental sector diversification, maintaining the quality and performance standards for which the two companies are well known in their markets.
The acquisition of 100 per cent of Spiral Ingranaggi SRL required a total investment for the Fund of EUR3.0 million, in addition to the EUR20 million invested in October 2017 for the purchase of 60 per cent of TFM. With this new deal, the Fund draws down 40 per cent of the capital in 24 months.
Daniele Camponeschi, Founding Partner and CIO of Green Arrow Capital, says: “This new deal well represents the Green Arrow Private Equity Fund investment strategy. As already executed in Fine PCB, the first portfolio company, the Fund aims to increase the company’s value also through a buy & built approach to accelerate their growth and improve their margins thanks to synergies.”
Nicola Pietralunga, Investment Director of the Private Equity area of Green Arrow Capital SGR and Roberto Giudici, Senior Investment Manager of Green Arrow Capital SGR are very satisfied for the acquisition of Spiral Ingranaggi in the TFM Group: “This add-on represents the first step in the portfolio company strategic plan to create value that focuses on three pillars: strengthening tier 1 position, entering new geographical areas and developing new production technologies.”
Green Arrow Capital has been assisted by PwC for the business side, by Legance law firm and by the Russo De Rosa Associati tax office. The seller has been assisted by law firm Gitti and Partners.

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