Partners Group has agreed to acquire Megadyne, an Italian maker of power transmission belts, from Astorg. Also, Partners Group has also agreed to buy acquire Ammeraal Beltech, a Dutch conveyer belt manufacturer, from Advent International. The combined value of the two deals is 2 billion euros. William Blair and RBC Capital Markets acted as M&A advisers to Partners Group while Clifford Chance provided legal advice.
Partners Group to acquire power transmission belts manufacturer Megadyne Group and conveyer belt manufacturer Ammeraal Beltech
Partners Group, the global private markets investment manager, has agreed on behalf of its clients to acquire Megadyne Group (“Megadyne”), a leading manufacturer of power transmission belts, from Astorg. The transaction follows Partners Group’s recent agreement to acquire Ammeraal Beltech (“Ammeraal”), a global leader in light-weight process and conveyor belting, from Advent International. The combined enterprise value of the two transactions, which both include investment participation from management teams, is EUR 2 billion.
Megadyne develops and manufactures polyurethane and rubber belts for use in power transmission and conveying systems, as well as a range of complementary products such as rubber hoses and metal pulleys. It has its headquarters in Turin, Italy, and serves over 30,000 customers across a variety of industries through 15 manufacturing plants and 33 distribution centers all around the world. The company employs more than 2,300 people and generated sales of EUR 319 million in 2017.
Ammeraal manufactures, distributes and maintains light-weight process and conveyor belts for a diverse range of applications covering nearly every major industry, including food processing, airports and baggage handling, logistics and textile production. Headquartered in Alkmaar in the Netherlands, the company provides products to over 30,000 customers in more than 150 countries.
It employs over 2,600 people and generated a turnover of EUR 385 million in 2017.
Once the acquisitions of Megadyne and Ammeraal have closed later this year, subject to anti-trust clearances and other regulatory approvals, Partners Group would in a next step plan to support a merger of the two companies, which have highly complementary product and service offerings. The potential merger would be to the benefit of both companies and their clients, creating a full-service provider across specialist industrial transmission belting and lightweight conveyor belting.
Giorgio Tadolini, CEO and member of the founding family of Megadyne, states: “Today is an important milestone in the history of the company my father founded over 60 years ago. We see a strong cultural fit with Partners Group and also with Ammeraal and believe the planned merger could cement a lasting legacy for both companies, which is why the Tadolini family has chosen to reinvest into this acquisition. Given recent industrial trends, we are convinced that numerous growth opportunities still lie ahead of us and look forward to benefiting from Partners Group’s proven track record of investment in the industrials sector as we aim to capture this growth.”
Prakash Iyengar, CEO of Ammeraal, comments: “Both Ammeraal and Megadyne are equally strong brands that customers associate with quality, reliability and innovation. The product portfolio is complementary and so is our global reach in key markets. I am confident that we can leverage our mutual synergies, organizational talent and disciplined operating model to create customer value and accelerate growth globally.”
Pascal Noth, Managing Director, Private Equity Europe, Partners Group, adds: “Megadyne and Ammeraal both operate in highly attractive markets and benefit from increasing industrial automation in many industry verticals across the world. We have admired the two businesses for many years and this is an exciting moment to support the new industry champion going forward. We are honored to partner with the Tadolini family as shareholders and look forward to working with the excellent leadership teams at Megadyne and Ammeraal.”
William Blair and RBC Capital Markets acted as M&A advisors and Clifford Chance acted as Legal Advisor to Partners Group.
About Partners Group
Partners Group is a global private markets investment management firm with EUR 62 billion (USD 74 billion) in investment programs under management in private equity, private real estate, private infrastructure and private debt. The firm manages a broad range of customized portfolios for an international clientele of institutional investors. Partners Group is headquartered in Zug, Switzerland and has offices in Denver, Houston, New York, São Paulo, London, Guernsey, Paris, Luxembourg, Milan, Munich, Dubai, Mumbai, Singapore, Manila, Shanghai, Seoul, Tokyo and Sydney. The firm employs over 1,000 people and is listed on the SIX Swiss Exchange (symbol: PGHN) with a major ownership by its partners and employees.