Tbg Holdings, the family office of the Thyssen family, owner of German steel giant ThyssenKrupp, acquired a 60% stake in the capital of Italian oil&gas sector valves maker Petrolvalves.
Tbg bought its stake from the heirs of founder Mario Candiani (who owned the stake together with Sator, a private equity fund sponsored by former banker Matteo Arpe) and by the Lualdi family owning the remaining 40% stake.
The auction exited then finally from a stall after the Lualdi family had applied to the Milan Court to resolve the deadlock in which the negotiations on the sale were bogged down (see here a previous post by BeBeez)..
The Candiani family actually planned to get out of the company, while the Lualdis didn’t. In August 2012, PetrolValves head Mario Candiani died and his daughters sought Italian financier Matteo Arpe to advise them what to do with their stakes. The family trimmed then its 60% equity holding by selling a 20% stake of its holding (or a 12% stake in Petrolvalves) to buyout fund Sator, led by Mr. Arpe. The Candianis were being advised on the sale by Banca Profilo, controlled by Arpe. Meanwhile the Lualdi family mandated Mediobanca to examine options and study the idea to make an offer for the 60% stake in PetrolValves in the hands of Sator and the Candiani sisters, possibly in an alliance with other investors.
Actually the Lualdi family last year entered into an agreement with London-based buyout fund Permira to study a joint bid. However the agreement expired and Permira chose not to go on the deal as it seemed too much complicated to come to an end in a reasonable time. And Permira was right as a deal was far to be reached even if the company Statute provides for the right of first refusal in favor of each of the two partners, in the event that the other wants to sell. And this was the point around which the Lualdis asked the Milan Court to intervene,
Petrolvalves reached consolidated revenues of 223,7 million euros in 2013 (up from 207.4 millions) with ebitda of 78 millions (from about 50 millions) and a positive net financial position thanks to 220 millions of cash. Valuation were said to be over 10x 2014 ebitda which is seen growing over ebitda in 2013.
