Rettig ICC expands into new markets through the acquisition of Italian Emmeti S.p.A.
Rettig ICC acquires 91 per cent of Emmeti S.p.A., the Italian heating, ventilation and air conditioning company (HVAC), from the Italian private equity investor PM&Partners and Mario Martin, co-founder and CEO of Emmeti. The acquisition supports Rettig ICC’s growth and innovation strategy as it takes Rettig ICC into new geographical markets and brings in new technologies to the company’s indoor climate comfort offering. The transaction also strengthens Rettig ICC’s position on the underfloor heating market.
The acquisition of Emmeti supports Rettig ICC’s diversification of its indoor climate comfort offering from traditional steel panel radiators to higher-growth underfloor heating (UFH), pipe fittings and controls. Emmeti also brings new technologies and businesses through its heat pump, air conditioning and solar panel business.
Whereas Rettig ICC has traditionally been strong in most parts of Europe apart from the south, Emmeti has a particularly strong market position in Italy. Emmeti has also a strong customer base in several other markets, such as Brazil and Spain, where Rettig ICC has no or limited presence.
Given the complementary geographical presence and the good fit between the production facilities of Rettig ICC and Emmeti, significant synergies are expected to be achieved. Emmeti has three manufacturing plants in Northern Italy, one of which is in Brescia (FIV S.r.l.), the heart of the Italian brass processing district.
The acquisition is financed with cash, short term financial instruments and a EUR 25 million new bank loan. No regulatory approval is required in order to close the deal, which is expected by the end of 2015.
Mario Martin retains 9 per cent of the shares in Emmeti S.p.A. and becomes a member of the Rettig ICC management team reporting to the CEO of Rettig ICC.
“The acquisition of Emmeti is a strategically important move for Rettig ICC as it allows us to enter new geographies and to expand our offering of energy efficient indoor climate comfort solutions”, said Neil Macpherson, CEO of Rettig ICC.
Rettig Group has been assisted by Advium Corporate Finance and Benedetti & Associates as financial advisors together with Nunziante Magrone as legal advisors. The sellers and Emmeti have been assisted by Di Tanno & Associati and Gianni Origoni Grippo Cappelli & Partners as legal advisors. PM&Partners has been assisted by Banca IMI (Intesa Sanpaolo Group) as financial advisor.
For further information contact:
Neil Macpherson, CEO of Rettig ICC: Tel. +44 191 4917301
Mario Martin, CEO of Emmeti: Tel. +39 (0)434 567911
Hans Sohlström, President and CEO of Rettig Group, Chairman of Rettig ICC: Tel. +358 (0)9 6188 3220
Massimo Grasselli, Managing Partner of PM&Partners: Tel. +39 02 7249041
About Rettig ICC Rettig ICC b.v., part of Rettig Group Ltd., is Europe’s leading supplier of heat emitters and indoor climate comfort. With 15 plants in 11 countries, Rettig ICC designs, manufactures and supplies radiators, underfloor heating, valves and controls to more than 50 countries, generating in 2014 a turnover of about EUR 554 million. www.rettigicc.com, www.rettig.fi
About Emmeti Group Emmeti Group, established in 1976, is a leading Northern Italian manufacturer of advanced and energy efficient systems for heating, plumbing and air conditioning. The company is headquartered in Vigonovo di Fontanafredda near Venice in Italy, and has three production plants in northern Italy. With about 20,000 installer and wholesale customers globally, turnover in 2014 was EUR 109 million and the company employed about 320 employees. Until the completion of the acquisition, the company is owned by PM&Partners (65%) and Mario Martin (35%). www.emmeti.com
About PM&Partners PM&Partners, founded in 2000, is a long standing private equity investor in the Italian mid-market. The firm has a proven track record of investing in mid sized Italian family companies. Emmeti was the first investment completed by PM&Partners II, a EUR 340 million fund raised in 2008. www.pm-partners.it