The fund IGI Investimenti Sei, managed by IGI Private Equity, together with Equilybra Spa e GMN Srl has bought the majority of Test Industry Srl, the technological leader in the production of test benches for leak, impulse, endurance, burst, functional and dimensional control tests on industrial products. The original management have reinvested to retain a minority share.
Following the operation, the investment vehicle Thalia Srl, with the shareholders IGI Investimenti Sei and Eraldo Bianchessi, who will support IGI Private Equity in managing the investment, holds around 42% of the share capital of Test Industry, Equilybra and GMN (the investment vehicle of F&P$BIZ Srl and Route Capital Srl) together hold 41% (18% and 23% respectively), while the management have a 17% share.
Test Industry, through its two subsidiaries Leonardo, based in Maclodio (Brescia), and Bimal, based in Perugia, generated a total turnover of over € 31 million in 2018 with an EBITDA margin of over 20%. The group has 122 employees and for more than 30 years it has serviced the most important operators in the automotive and aerospace industries, the industrial, construction and agricultural machinery sectors, as well as oil and gas.
IGI Private Equity is investing in Test Industry with the other partners to support its plans for integration and development, above all through further acquisitions, with the objective of consolidating its position as market leader and to become one of the principal global players in the sector. Angelo Mastrandrea, Partner of IGI Private Equity, will take the role of Chairman with Daniel Spezzaballi and Roberto Malfagia as Managing Directors.
This operation is the second investment for IGI Investimenti Sei, the buyout fund launched in October 2018 with a fundraising target of € 150 million. The fund, which has already made its first closing at € 100 million and expects to carry out the second closing after the summer break, confirms the IGI strategy of investing in outstanding Italian producers to strengthen their organizational structure and boost growth, in particular through acquisitions, as already seen with other operations such as Rollon, Gruppo Fabbri Vignola, Vimec, Fimotec and Nuovaplast.
Angelo Mastrandrea, Partner of IGI Private Equity, comments “Rapid technological evolution and the continual pursuit of performance throughout the manufacturing sectors makes the testing industry all the more strategic in order to reduce the growing costs of non-conformity and untested quality. We believe that Test Industry represents the best platform for investing in this long-term structural trend and is the pivot for a global consolidation process.”
Matteo Cirla, MD of IGI Private Equity, says “I’m very pleased to announce this new investment in Test Industry, one of the many outstanding Italian producers which IGI has invested in, led with great passion and vision by the entrepreneurs Daniel Spezzaballi e Roberto Malfagia. We are very satisfied with this second investment coming a few months after the first in Nuovaplast and we expect the second closing of the fund within weeks which will allow us to continue offering an interesting risk-return profile.”
Daniel Spezzaballi, MD of Test Industry, adds “The new shareholding structure ensures the necessary financial stability to launch the second phase of the industrial plan which includes a programme of buy & build. This will enable the group to broaden its range of products and services, as well as strengthening one of its main competitive advantages of a diversified choice of machines for effectively testing the industrial products of our clients.”
The fund IGI Investimenti Sei, with the deal team of Matteo Cirla, Angelo Mastrandrea, Andrea Bruschi, Cristian Cantaluppi and Alessandro Castiglioni, had legal assistance from Chiomenti and DV Studio Legale. Due diligence was carried out by PWC, Di Tanno e Associati and Golder, while Goetzpartners provided business analysis.
The sell side was assisted by the financial advisors LABS Corporate Finance, while LCA provided legal assistance.
Credit Agricole e BPER Banca provided debt structuring with legal assistance from Dentons.