Fi.Mo.Tec is a leading manufacturer of fastening systems for the telecom and broadcasting sectors
Based in Cologno Monzese, the company has its main manufacturing plants in Italy and India, with over 60 employees worldwide, and generates 80% of its revenues abroad with commercial subsidiaries in Germany, France and the USA
Origination
IGI’s consolidated relationships within the Italian business community and wide network of M&A advisors
Transaction Structure
IGI completed the acquisition of a 99.5% stake of Fi.Mo.Tec through a newco for a total investment of €13.5 million by the funds IGI Investimenti Cinque (€10.4 million) and IGI Investimenti Cinque Parallel (€3.1 million)
Tora S.r.l. was the newco which owned 100% of Fi.Mo.Tec as a result of a two‐step acquisition: in July 2014, Tora acquired a 50.5% stake in Fi.Mo.Tec, financed through equity and a vendor loan; in March 2015, Tora bought the remaining 49.5% stake for €21 million financed entirely with leverage
Investment Rationale
Leading position in a niche market with a worldwide presence
Positive expected trend in telecommunication infrastructure (4G, 5G)
Relevant cash conversion thanks to a light capital business model
High potential from strengthening the management team
New technology related product opportunities (optical fiber)
Enlarge geographical presence (USA, Africa)
Value Creation Strategy
Appointment of a highly skilled CEO and COO
Signing of new commercial partnerships to expand the products portfolio and mitigate business cyclicality.
Widen the existing product portfolio through R&D.
Rationalization of operations, increase of production in Indian plant
Expansion in new geographical areas through the hiring of dedicated export managers.
Optimization of the company financial structure and improvement of working capital management.
Acquisition of Polyform in 2017. Acquisition of DCE in 2018.
Value Realization
Exited in July 2020 through sale to another financial operator.