The Carlyle Group will sell Marelli Motori to the English holding company Langley plc (see the press release here). Latham & Watkins law firm assisted Carlyle in the transaction, which includes the full repayment of the 55 million euro debt, while Langley was advised by Gateley Plc. Finally, Linklaters supported the banks.
Carlyle, through the Carlyle Europe Partners III fund, had purchased Marelli Motori in the Summer of 2013 for an enterprise value of 212 million euros (9.5 times the 2012 ebitda, which had been 22.2 million euros after revenues of 149.1 millions). The company was then sold by the British mechanical group Merlose Industries. The transaction was related to the capital of Marelli Overseas Limited, the holding company to which the operating company Marelli Motori belongs (see here a previous post by BeBeez)
Marelli Motori had subsequently grown, reaching 153 million euros in revenues in 2015, but then gradually returned to 2012 revenues, closing 2017 with 149.1 million euros in net sales, an ebitda of slightly less than 7 millions and a net loss of 8.8 millions, with a net financial debt of 26 millions (see here an analysis by Leanus, after free registration and login).
Founded in 1891 and led by ceo Mauro Sacchetto, Marelli Motori is one of the world leaders in the production of generators for industrial use and electric motors in the sectors of electricity production, manufacturing, oil and marine. Based in Arzignano (Vicenza), it has two production plants in Italy and Malaysia and is present with its own branches in Germany, the United Kingdom, Spain, the United States and South Africa.
Marelli had entered the perimeter of Melrose in 2008 when the British group listed on the London Stock Exchange had acquired FKI Engineering, which in turn had bought Marelli Motori from the two US funds Westford capital investments and Mutual Series. With the latter who had taken over the Italian company at the end of 1994 from the bankruptcy procedure of Gerolimich (Cameli group), a company then listed on Piazza Affari and protagonist of a large financial crack.
As for Langley Holdings plc, it is a group specialized in engineering, founded in 1975 by the current president, Tony Langley, and is wholly owned by his family. Before the acquisition of Marelli Motori, the group comprised 5 divisions based in Germany, France and the United Kingdom, with a substantial presence in the United States and over 80 subsidiaries in the Americas, Europe, the Far East and Australia, employing around 4,300 people all over the world.
