EQUITA assisted Rototech

K Finance - Mid-market M&A advisory
Rototech 1920x1080
Rototech 1920x1080

Quadrivio Group, through Industry 4.0 Fund, acquired a majority stake in Rototech, an Italian group that, using rotational technology, has gained a global leadership position producing fuel tanks and Ad Blue, air intake systems and other components for the most important manufacturers of industrial vehicles, agricultural and earthmoving machinery.

The deal was financed by Banco BPM. For the legal aspects Quadrivio Group was assisted by Accinni, Cartolano e Associati Studio Legale, for the fiscal aspects by Russo De Rosa Associati. For the industrial aspects and business plan Quadrivio Group worked with Roland Berger, while for the financial due diligence it was assisted by KPMG.
As for the sellers, the deal was followed as financial advisor by K Finance (Clairfield Italy), as legal advisor by NCTM and by Deloitte for the vendor due diligence.

The acquisition represents the second investment by the Industry 4.0 fund promoted by Alessandro Binello, Walter Ricciotti and Roberto Crapelli, after the very recent investment in Nabucco. The Fund takes over the majority of the Company from the Accornero family. Oreste Accornero, the current Rototech Chairman, will continue to lead the company and will be assisted by a CEO, expert in the sector, for the implementation of the new industrial development plan.

Rototech started its activities as early as 1916 with a sheet metal forming company founded by the grandfather Oreste Accornero of the same name as the current President. Today Rototech Group, based in San Gillio (Turin), has a significant international presence with plants in Italy, France, India and Russia plus an important partnership in China; this confirms its predisposition for exports and global markets. In 2018 Rototech Italia exported more than 90% of its turnover, which reached 60 million Euros, employing more than 450 people worldwide.

The investment transaction aims to support and promote business development at an international level, through investments in 4.0 technologies to be concentrated in existing plants. RTT Group’s mission for the coming years will be to make the most of the competitive advantage previously acquired by the JV in Russia and, through its acknowledged technological leadership, to strongly consolidate the market position of the JV in India, which is already a supplier to the most important manufacturers of industrial vehicles. Further international expansions, relevant for the future development of the core business, will be evaluated.

For Pietro Paparoni, Investment Director of Quadrivio Group, the second investment of Industry 4.0 Fund represents “a transaction defined together with the Accornero family, which foresees new investments in productivity improvement and a managerial path where, together with the entrepreneur, we have already identified the new team of managers who will be able to support the new challenges set by the ever-increasing internationalization of the market”.

For Roberto Crapelli, Managing Partner of the Fund, “it is necessary to disintermediate portions of the supply chain with a new business model created with 4.0 technologies, in order to consolidate and further grow as first tier supplier to existing customers such as Caterpillar, Cummins, Renault-Volvo, CNH, DAF and Daimler. This is the clear value creation strategy behind the acquisition of Rototech by Quadrivio Group’s Industry 4.0 fund. A strategy that puts sustainability first, thanks to Rototech’s leadership in systems that use urea to reduce harmful emissions, as prescribed by the increasingly stringent regulations even in the fastest-growing industrial vehicle markets such as Russia and China, where Rototech is already present.”

Oreste Accornero, founder and President of Rototech: “Since its inception more than 30 years ago, Rototech has been managed by the family and has gained a unique market position by pioneering and promoting rotational technology in the industrial vehicle sector. This is not only in Italy but among all European industrial vehicle OEMs first and then more recently in Asia.
The choice to have Quadrivio as a strategic partner stems from the consideration that the size of the business has become increasingly larger with the opportunity to grow exponentially, in a short time, only if supported by a more managerial management. We were looking for a partner who would share with us a strategy aimed at focusing more on industrial development aspects than solely financial ones and we found it in the Industry 4.0 Fund team.
The opportunity to have with us in the management a partner as Industry 4.0 fund will also help us to better redefine the internal organization, introducing procedures and rigor, difficult to achieve in a company “family”, and optimizing the roles and responsibilities in the primary management functions.”

The transaction in a nutshell

2019 07 Tombstone Rototech Quadrivio

The investment deal aims to support and promote business development internationally

Client:
Rototech
Date:
August 2019
Mandate:
Quadrivio Group, through Industry 4.0 Fund, acquires a majority stake in Rototech
Role:
Financial Advisor
Value:
Undisclosed
Typology:
M&A advisory
Advisor:
EQUITA Mid Cap Advisory

The company

Quadrivio Group is an active reality in the world of Alternative Investments. The Group operates through dedicated teams in the Private Equity, Private Debt and Managed Accounts sectors. Quadrivio Group’s mission is to monitor international trends, developing products in line with the needs of investors, both private and institutional. The track record, with over 100 investments, and the highly specialized teams have enabled Quadrivio Group to achieve ambitious results and top quartile performance over time. The management owns 100% of Quadrivio Group and invests directly in the funds, thus bringing the internal interests fully into line with those of the investors. Quadrivio Group has offices in Luxembourg, London, Milan, New York and Hong Kong.

Rototech S.r.l., founded in 1916 by Oreste Accornero senior in Turin and now based in San Gillio (Turin), is an Italian company that designs and manufactures, with rotomoulding technology, plastic components for the industrial, agricultural and construction vehicle sectors. The key product is the Urea tank. Rototech is now headquartered in Italy and has foreign plants in France, India and Russia, in addition to an important partnership in China. The company as a whole has over 450 employees worldwide.