Arsiero (VI, Italy), Busano (TO, Italy), Mysore (India) (June 9, 2021) – The Shareholders of Siderforgerossi Group S.p.A. (“Siderforgerossi”) announced today to have entered into a binding and definitive agreement for the disposal of their participation to KPS Capital Partners, LP (“KPS”), a leading private equity firm based in New York (USA).
KPS is a family of investment funds with approximately $12.8 billion of assets under management as of March 31, 2021. For nearly three decades, the Partners of KPS have specialized in making controlling equity investments in manufacturing and industrial companies across a diverse array of industries. The KPS Funds’ portfolio companies have aggregate annual revenues of approximately $10.9 billion, operate 149 manufacturing facilities in 22 countries, and have approximately 35,000 employees, directly and through joint ventures worldwide. Siderforgerossi represents the second KPS Special Situations Mid-Cap Fund investment in Italy.
Adriano Zambon, Chief Executive Officer of Siderforgerossi, said, “We are excited to operate with KPS’ 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. With KPS’, we will develop a range of growth and operational initiatives to build upon our long and successful history.”
Ryan Harrison, a Partner of KPS Mid-Cap Investments (“KPS Mid-Cap”), said, “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, multidecade experience in investing in the metals and forged products industries.”
Financial terms of the transaction were not disclosed. Mediobanca – Banca di Credito Finanziario S.p.A. served as lead financial advisor and NTCM Studio Legale served as legal counsel to selling shareholders of Siderforgerossi Intesa Sanpaolo S.p.A. – IMI Corporate & Investment Banking Division served as lead financial advisor, Houlihan Lokey EMEA, LLP served as lead debt capital markets advisor, and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to KPS.
About Siderforgerossi Group
Siderforgerossi is a leading, vertically integrated manufacturer of forged products with capabilities across the manufacturing spectrum, including ring-rolling, open die and closed die forging. The Company is specialized 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. For additional information, please visit www.siderforgerossi.com.
About KPS Capital Partners
KPS, through its affiliated management entities, is the manager of the KPS Special Situations Funds, a family of investment funds with approximately $12.8 billion of assets under management (as of March 31, 2021). For nearly three decades, the Partners of KPS have worked exclusively to realize significant capital appreciation by making controlling equity investments in manufacturing and industrial companies across a diverse array of industries, including basic materials, branded consumer, healthcare and luxury products, automotive parts, capital equipment and general manufacturing. KPS creates value for its investors by working constructively with talented management teams to make businesses better,and generates investment returns by structurally improving the strategic position, competitiveness and profitability of its portfolio companies, rather than primarily relying on financial leverage. The KPS Funds’ portfolio companies have aggregate annual revenues of approximately $10.9 billion, operate 149 manufacturing facilities in 22 countries, and have approximately 35,000 employees, directly and through joint ventures worldwide. The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.
KPS Mid-Cap focuses on investments in the lower end of the middle market that require up to $100 million of initial equity capital. KPS Mid-Cap targets the same type of investment opportunities and utilizes the same investment strategy that KPS’ flagship funds have for nearly three decades. KPS Mid-Cap leverages and benefits from KPS’ global platform, reputation, track record, infrastructure, best practices, knowledge and experience. The KPS Mid-Cap investment team is managed by Partners Pierre de Villeméjane and Ryan Harrison, who lead a team of experienced and talented professionals.