KPS Capital Partners (KPS) has signed a definitive agreement to acquire Siderforgerossi Group, SpA (Siderforgerossi), 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.
Siderforgerossi is a 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 specialised 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.
Ryan Harrison, a Partner of KPS Mid-Cap Investments (KPS Mid-Cap), says: “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, multi-decade experience in investing in the metals and forged products industries.”
Adriano Zambon, Chief Executive Officer of Siderforgerossi, says: “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 have not been disclosed. Intesa Sanpaolo SpA. – 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 served as lead financial advisor and NTCM Studio Legale served as legal counsel to selling shareholders of Siderforgerossi and to the Company.