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Astorg acquires Megadyne

13 June 2014

The Tadolini family, founder of Megadyne S.p.A., has entered into a sales agreement with Astorg Partners, a leading European private equity fund, and Fondo Italiano d'Investimento, to structure the company for future development.

Astorg Partners has entered into an agreement to acquire the majority of Megadyne S.p.A. shares from the Tadolini family, the Fondo Italiano d'Investimento and other senior managers. The current shareholders, including Fondo Italiano d'Investimento, will reinvest significantly alongside Astorg Partners and Giorgio and Marco Tadolini will continue to lead the company in its next phase of development respectively as Executive Chairman and Managing Director. Completion of the transaction is subject to satisfactory clearance from relevant competition and regulatory authorities.

Founded in 1957 by Corrado Tadolini and headquartered in Mathi, near Torino, Megadyne is a world's leading manufacturer of premium industrial belts in both polyurethane and rubber used for power transmission, linear positioning and conveying system in various end-markets. Megadyne benefits from an attractive business model focusing mainly on specialty belts that are co-designed together with customers. The company has a large customer base worldwide and a unique manufacturing and logistics know-how. Megadyne employs over 1,600 employees worldwide across its 10 manufacturing sites and 33 commercial branches in Europe, America and Asia.

After 60 years of continued growth, Megadyne has reached a turning point in its development and is ideally positioned to continue to expand its activities all over the world organically and through sizeable bolt-on acquisitions.

Francois de Mitry and Lorenzo Zamboni, at Astorg Partners commented "We are impressed by the company's continued growth and development, supported by the Tadolini family over the last 60 years. Astorg Partners is proud to partner with this entrepreneurial and successful family and to back the company in its next phase of development. Megadyne offers all the key attributes we look for in an investment, including world's leading market positions, strong barriers to entry, promising future prospects and an excellent management team. This transaction is the result of the strong commitment of Astorg to invest in Italy since 2010."

Giorgio and Marco Tadolini added "We are delighted to partner with Astorg who has demonstrated a strong understanding of our business. The transaction represents an opportunity to accelerate the growth of Megadyne internationally through acquisitions in order to create a formidable platform with worldwide presence."

Gabriele Cappellini, CEO of Fondo Italiano, said "Fondo Italiano is extremely proud to have contributed to the creation of a "high-achieving medium-sized domestic company". We are confident that the entrepreneurial skills and continued guide of the Tadolini family will allow the Group to consider new opportunities in the next few years, such as a possible stock listing. With our re-investment, we want to continue supporting the Group's growth alongside the Tadolini family and with an important international partner such as Astorg".

 
© Astorg 2018. Registered in France No. 419 838 545. Astorg Partners is a fund management company approved and regulated by the AMF in France (approval number GP 98-36). Astorg Partners is a registered trademark. Astorg Asset Management is a fund management company approved and regulated by the CSSF in Luxembourg (approval number N. A00001441). Astorg Asset Management is a registered trade mark.