Partners Group has acquired Italian power transmission belt manufacturer Megadyne Group from Astorg Partners.
The deal follows Partners Group’s recent acquisition of Ammeraal Beltech, a Dutch conveyor belting company, from Advent International.
The combined enterprise value of the two transactions is €2bn, inclusive of investment participation from both management teams.
Megadyne manufactures polyurethane and rubber belts for use in power transmission and conveying systems, as well as complementary products like rubber hoses and metal pulleys.
Headquartered in Turin, the business employs more than 2,300 people through 15 manufacturing plants and 33 distribution centers worldwide. Megadyne made sales of €319m in 2017.
Ammeraal makes, distributes and maintains light-weight conveyor belts for use in nearly every major industry, including food processing, airports and baggage handling, logistics and textile production.
Once the sale of the two firms closes later this year, Partners Group will look to support a merger of Megadyne and Ammeraal to create a full-service provider across both industrial transmission and lightweight conveyor belting.
Commenting on the deal, Megadyne CEO and member of the company’s founding family, Giorgio Tadolini, says: “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.”
Pascal Noth, a managing director at Partners Group, adds: “We have admired the two businesses for many years and this is an exciting moment to support the new industry champion going forward.
“Megadyne and Ammeraal both operate in highly attractive markets and benefit from increasing industrial automation in many industry verticals.”
William Blair and RBC Capital Markets acted as M&A advisors and Clifford Chance acted as legal advisor to Partners Group on the transaction.
Italian law firms BonelliErede and NCTM acted as advisors to Astorg and Megadyne’s management team respectively.