One Equity Partners has agreed to merge portfolio company Walterscheid Powertrain Group into Comer Industries, following which it will own a significant minority stake in the combined powertrain equipment company. The companies generated combined revenue of €792.3 million and adjusted EBITDA of €86.5 million for year ended 2020. The transaction is expected to close in Q4.
NEW YORK – July 15, 2021 – One Equity Partners (“OEP”), a middle market private equity firm, today announced that it has entered into a definitive agreement to merge its investment in Walterscheid Powertrain Group (“Walterscheid”), a leading provider of highly-engineered, mission critical powertrain systems and services for off-highway and industrial applications, into Comer Industries S.p.A. (“Comer”) (Borsa Italiana S.p.A.: BIT:COM), a designer and manufacturer of advanced engineering systems and solutions for power transmissions. Under terms of the transaction, OEP will continue to own a significant minority stake in the combined company.
The transformational combination of Walterscheid with Comer will create one of the largest global providers of powertrain equipment with highly complementary product portfolios, and aftermarket parts and related services for the agricultural, construction and wind power end markets. For the twelve months ending December 31, 2020, together the two companies generated €792.3 million of revenue and €86.5 million of adjusted EBITDA in 2020.
“The strong rebound in the agriculture and construction equipment sectors, along with rising food production, a greater reliance on wind energy and increased outsourcing by OEMs will provide strong secular tailwinds to support the growth of the combined business for years to come,” said Joseph Huffsmith, Managing Director of OEP. “We believe that the combined company, with its increased scale and product portfolio, will be able to better serve its customers worldwide,” added Steve Lunau, Managing Director of OEP.
“OEP has been an outstanding partner to Walterscheid and instrumental in supporting our growth over the last two years. We’re delighted the firm has decided to remain an investor in the combined business,” said Wolfgang Lemser, CEO of Walterscheid Powertrain Group. “Walterscheid and Comer share the same commitment to high quality customer service, safety, innovation and have highly complementary product portfolios.”
“We are thrilled to partner with Walterscheid and OEP,” said Matteo Storchi, Chairman and CEO of Comer Industries. “Our collective knowledge and experience in the industry will provide the right strategic, financial and operational resources for building on Comer’s core business and pursuing new growth opportunities that lie ahead.”
The transaction is expected to close in the fourth quarter, subject to antitrust approval and other customary closing conditions.
About One Equity Partners
One Equity Partners (“OEP”) is a middle market private equity firm focused on the industrial, healthcare, and technology sectors in North America and Europe. The firm builds market-leading companies by identifying and executing transformative business combinations. OEP is a trusted partner with a differentiated investment process, a broad and senior team, and an established track record generating long-term value for its partners. Since 2001, the firm has completed more than 300 transactions worldwide. OEP, founded in 2001, spun out of JP Morgan in 2015. The firm has offices in New York, Chicago, Frankfurt and Amsterdam. For more information, please visit www.oneequity.com.
About Walterscheid Powertrain Group
The Walterscheid Powertrain Group is a global provider of connected and smart powertrain solutions and complete in-service support for the world’s leading off-highway and industrial equipment manufacturers. The firm continuously develops new technologies and customer solutions which deliver efficiency in the agriculture, construction, mining, utility vehicle and industrial markets and offers through life services for all powertrain products and systems between power source and power applied. With its global platform across 4 continents the Walterscheid Powertrain Group is the technology partner and innovation leader to the global leading OEMs. This together with a comprehensive aftermarket and service offering positions the group for above market long term growth. For more information, please visit https://www.walterscheid-group.com/.
About Comer Industries S.p.A.
Comer Industries is a global player in the design and production of advanced engineering systems and mechatronic solutions for power transmission, supplied worldwide to the major manufacturers of agricultural and industrial machinery. www.comerindustries.com.