Italy’s Raccortubi spa announced the acquisition of 100% of the capital of Scottish Norsk Alloys Ltd, Raccortubi is one of the world’s leading stockholders, manufacturers and suppliers of piping materials used in critical applications, such as chemical and petrochemical plants, oil installations, power plants, shipyards and offshore platforms.
The acquired company recorded 5 million euros in revenues last year and is based in Aberdeen, Scotland. The company has a lengthy experience in the distribution of pipes, fittings and flanges for the Oil & Gas industry, MF Milano Finanza writes today.
The acquisition of Norsk Alloys, whose new company name will be Raccortubi Norsk Ltd, is destined to reinforce the Group’s distribution network on an international scale. This network currently consists of Raccortubi do Brasil, Raccortubi Middle East (Dubai) and Raccortubi Singapore. The addition of Raccortubi Norsk is consolidating their presence in the oil & gas industry, which has always been a reference market for the group.
Peter Ray, previous owner of Norsk Alloys, became a minor shareholder in Raccortubi with a 2% stake and will continue to lead the company as managing director. This significant standing in the United Kingdom will support Raccortubi UK, recently established in the London area to provide a service dedicated to engineering companies, plant manufacturers and major end users.
During the transaction, Raccortubi was assisted by K Finance and Orbis (Clairfield International’s partners for Italy and the UK respectively) as financial advisors of the buyer; by Studio Pedersoli e Associati and Mills&Reeve as legal advisors; and by BDO LLP for the accounting due diligence. Norsk Alloys was assisted by Infinity Partnership and Stronachs LLP as financial and legal advisors respectively of the seller.
Raccortubi’s vice-chairman Luca Pentericci had told BeBeez last May during a webinar about SMEs m&a that an international acquisition was coming (see here a previous post be BeBeez).
Founded in 1949 in Milan by Piergiorgio Pentericci, Raccortubi is owned today by his son Luca. At the end of 2014, private equity fund Sinergia II, managed by Synergo sgr, entered Raccortubi’s capital with a 25% stake (see here a previous post be BeBeez). The operation resulted in an increase of capital destined to support Raccortubi in the implementation of a significant growth project on both a national and international scale. Financial advisor for that deal to had been K Finance.
Simultaneously with the entrance of the investment fund, 100% of the capital of Petrol Raccord spa, a manufacturer of butt weld fittings in stainless steel and special alloys, was added to align the existing production of the subsidiary Tecninox srl and extend the range. And Synergo committed to add more capital when I would be needed for other acquisitions.
Raccortubi will reach 80 million euros in revenues this year (in line with FY 2014) with an ebitda margin above 10% and targets 100 million euros in revenues by the medium term without counting rvenues from coming acquisitions. “Whenever we reach a fair weight our target is to list the company on the Italian Stock Exchange“, Mr. Pentericci told BeBeez during the webinar.