EQUITA assisted OME

EQUITA Mid Cap Advisory - Mid-market M&A advisory
OME 1920x1080
OME 1920x1080

IGI Private Equity continues its investment strategy focused on the sustainable transition of family businesses by announcing that OME Srl (hereinafter also “OME” or the “Group”), a company in their portfolio, has acquired 100% of Jungeblodt GMBH from Mr. Klemens and Heinrich Jungeblodt.

OME was assisted by EQUITA Mid Cap Advisory, part of EQUITA Group, exclusive member for Italy of Clairfield International, together with Clairfield Germany. PWC followed financial due diligence. The firm Flick Gocke Schaumburg followed legal and tax due diligence. Molinari Agostinelli Studio Legale handled the deal structuring. ERM instead handled EHS due diligence.  BonelliErede handled the Transaction's legal and antitrust profiles. The sellers were assisted by MCF Corporate Finance and by Freshfields Bruckhaus Deringer for all contractual and corporate aspects of the transaction. The law firm Simmons & Simmons assisted the Company on the bank contracting side. Dentons assisted the financing banks side (Intesa Sanpaolo, BPER Banca and Crédit Agricole).

As part of the deal, the Jungeblodt brothers will reinvest a portion of the proceeds from the sale to help the integration of the two entities and the enhancement of all the people and skills present in the two companies. In aggregate, the group will have nearly 400 employees divided between the production facilities of Erba, Cividate Camuno and Warstein.

OME has achieved significant organic growth since the entry of IGI Private Equity, reaching 50 million in sales with a margin of more than 20% and good cash generation. Thanks to this excellent performance, OME's management team, led by Andrea Zuccarino, sees the integration with Jungeblodt as a great opportunity for external growth, reaching new customers in markets not yet covered, broadening the product range, and expanding the production capacity that the two companies can offer both in terms of quality and quantity. The two companies' goal is to reach 100 million in sales within a few years, while maintaining the extraordinary quality of their products and ability to serve customers with special products with high technological content.

This transaction will allow the consolidation of the Group in the critical fastening systems segment through the merger of two historical manufacturing companies in the world's leading countries for machining and first in Europe in steel production," says Mr. Andrea Zuccarino, CEO of OME.

The transaction in a nutshell

2024 06 Tombstone OME IGI Jungeblodt

This transaction will allow the consolidation of the OME Group in the critical fastening systems segment through the merger of two historic manufacturing entities.

Client:
OME
Date:
July 2024
Mandate:
OME (IGI Private Equity) takes over 100 % of Germany's Jungeblodt
Role:
Financial Advisori
Value:
Undisclosed
Typology:
M&A advisory
Advisor:
EQUITA Mid Cap Advisory

The company

OME, acquired by IGI in 2021 from the three brothers Filippo, Diego and Carlo Farina, has been operating for more than 70 years in the production of fastening systems for critical applications especially in the off-shore, marine and power generation sectors, where absolute reliability, product precision along with very stringent production process certifications are required.

OME represents one of six investments made by the IGI Buy-out 3 fund. The others were Nuovaplast, already divested in 2022, Test Industries, Tramec, Matec, and most recently Thermokey. The fund closed in 2020 with an endowment of 170 million euros, substantially invested.

IGI private equity is an incumbent focused on Italian companies; the fund invests to foster size and management transition to improve companies' competitive positioning with a vision of long-term sustainability.

Jungeblodt is competitor active in the production of fastening systems for critical applications that belonged to the family of the same name for five generations. Based in Warstein, Germany, it generates more than 30 million in sales with good margins by selling its products both in Germany and abroad, including the U.S. and China.