MCP acquires Tieffe SpA Group

Mandarin Capital Partners acquires Tieffe SpA Group

Milan – 22nd December 2014 – Mandarin Capital Partners has signed a preliminary Sale & Purchase Agreement for the acquisition of a majority stake in the share capital of Tieffe S.p.A., a leading European company in the production of hose fittings for hydraulic applications. The shares have been sold by another PE fund – CN2 – managed by Opera SGR. The closing is estimated to take place during January 2015.

Amongst the sellers there are also the Vaghi family and Gennaro Calanchi (both founders of the group), which, together with other private investors, will reinvest in a minority stake. The acquisition’s goal is to support the growth and internationalization project of the group, also through an add-on strategy.

The company will continue to be managed by Luigi Antonio Vaghi, as president of the Board of Directors,  and by Giovanni Vaghi, as CEO. Furthermore, Nicola Carminucci (which held a managing position in the Interpump Hydraulics group) will take a seat in the Board of Directors and buy a minority shareholding, and will contribute in the development and international growth of the company.

“The acquisition by the fund Mandarin Capital Partners II” Luigi Antonio Vaghi and Giovanni Vaghi wish to underline “is finalized to the development of Tieffe Spa in new markets, in particular the Asian one where the new partner’s network and communication channels are very important. This deal allows Tieffe to expand its visions, seeking to accomplish a geographic, industrial, economical and competitivity growth.”

Enrico Ricotta, managing partner  of Mandarin Capital Partners points out: “We are very satisfied by this deal, which represents the second investment of the PE fund Mandarin Capital Partners II shortly after one year from its launch. Tieffe Spa is a typical Italian industrial excellence and we are proud of supporting Tony and Gianni Vaghi in a growth path which, accordingly to the investment strategy of Mandarin, will look with interest at the Chinese market.”

On the sell-side Michele Russo, CEO of Opera SGR, wants to add: “We thank Tony and Gianni  Vaghi for the work undergone together and we congratulate with them for the important development the company underwent whilst we were the majority shareholders. We wish them and Mandarin Capital Partners best of luck in making an additional leap forward and to win the challenge of expansion in this ever more global market.”

During Year 2013, the Tieffe Group made a consolidated turnover in its core business of € 23.5 milions, with an EBITDA of about 20%.

In the preparation of the deal Mandarin has been assisted in the legal aspects by the Studio LMCR (with Roberto Rio, Elmar Zwick and Leopoldo Giannini as lawyers), in the financial due diligence by Deloitte Transaction Services (Andrea Casella and Marco Loda), in the fiscal due diligence by Deloitte Studio Tributario (Franceso Saltarelli and Valentina Santini), whilst the business due diligence was handled by Roland Berger.

The founding shareholders have been assisted in the legal aspects by the Studio Rodl & Partners (Daniele Bonvicini and Riccardo Sismondi as lawyers) and in the fiscal aspects by the Studio Rutigliano Tiezzi Zucca (Lorenzo Rutigliano).

Opera benefitted of the legal counseling of the Studio NCTM (Paolo Montironi, Monica Montironi and Massimo Castiglioni as lawyers).