US Nasdaq-listed company ParkOhio announced that it has signed a definitive agreement to acquire Saet spa, an Italian company which is a leader in the design, manufacturing and testing of induction heating equipment and heat treat solutions (download here the press release).
ParkOhio will pay a price of 18.4 million euros. Sellers are Italian private equity operator Star Capital sgr (who bought a 74.3% stake in Saet’s capital in May 2006), the Canavesio family and the managers. Financial adviro to the sellers was K Finance while their legal advisor was Studio Legale Acinni Cartolano & Associati. Jones Day law firm supported Park Ohio.
Headquartered in Turin, Saet operates through its locations in Italy, China, India, and Tennessee. With over 4,000 machines installed all over the world, Saet machines are used for hardening, tempering, and annealing for various industrial applications in the agricultural, automotive and renewable energy markets. In 2013 Saet reached 27 million euros in consolidated revenues with a negative ebitda of 2 millions, but in 2014 revenues are seen over 30 millions with a positive 10% ebitda margin.
Park Ohio is a leading provider of supply management services and a manufacturer of highly-engineered products. Headquartered in Cleveland, Ohio, the Company operates 44 manufacturing sites and 55 supply chain logistics facilities. Seat’s acquisition strengthens the position of its subsidiary Ajax Tocco Magnethermic (ATM)’s as the global leader of induction products and will add key technologies to an already diverse portfolio of induction machine capabilities. ATM’s worldwide network of customer service centers and leading induction technologies are expected to increase the sales of Saet’s equipment and aftermarket products.
ParkOhio reached 1,2 billion dollaras in consolidated revenues in 2013 and in the nine months of 2014 had one billion dollars revenues 12.5% more than the 898.3 millions of the same period of 2013. The group targets a 13.5-14.5% increase in revenues this year with ebitda in the range of 132.5-137 million dollars.