Auxiliary equipment supplier Piovan SpA is being purchased by a subsidiary of Italian investment firm Investindustrial. Venice, Italy-based Piovan is publicly traded but is majority owned by Pentafin SpA.
Founded in 1934 and part of the plastics industry since 1964, Piovan's products automate the storage, transport and treatment of plastics and food.
Piovan owns several plastics auxiliary equipment brands, including Conair, UnaDyn, Piovan, Pelletron, and Thermal Care.
Nicola Piovan, chairman of Piovan's board of directors, said this deal marks the beginning of a new chapter for the company.
"I am very proud of the growth path taken and the results achieved by the Piovan group from its foundation to today. In recent years, the Piovan group has been able to firmly consolidate its position as one of the leading global players in the development and production of automation systems for manufacturing processes," he said.
"Today marks the beginning of a new chapter for the future of the Piovan group and its employees, to be written together with Investindustrial, an international partner with a strong entrepreneurial spirit whose vision, values, and focus on sustainability I share."
According to Investindustrial, its Automation Systems SpA will take over 58.35 percent of the machinery company's share capital, worth about € 438 million ($476.6 million).
In a separate transaction, Investindustrial also signed an agreement to acquire the 6.78 percent of the share capital held by 7-Industries Holding BV, at a price of 49 million euros ($53.3 million). Combined, the shares give Investindustrial a 67.96 percent stake in Piovan.
Pentafin, Piovan's current main shareholder, will then reinvest in Automation System's capital by acquiring a 25 percent stake.
Once the transaction is closed, a mandatory takeover bid will be launched on the Piovan shares placed on the market — at a unit price of 14 euros per share — with the aim of delisting the company from Euronext Star in Milan.
The price of 14 euros per share implies a market capitalisation of about €716 million ($779.3 million), a 13.4 percent premium compared to the official share price on July 18, the day before the announcement.
The transaction is expected to close in mid-October.
Nicola Piovan will remain as chairman of the board, and CEO Filippo Zuppichin will continue in his role.
According to Investindustrial President Andrea C. Bonomi, the Piovan group is a perfect example of the investments that Investindustrial prefers.
He said the family business has rapidly evolved in the automation sector. The "Piovan group represents excellence in the world and on which Investindustrial intends to focus, with a particular focus on organic and inorganic globalization and sustainability, issues to which we have always paid great attention."
Bonomi added that going forward, management will be focused on a "shared growth project" that will develop over the years.
"This significant investment will further consolidate the company's leadership in the sector, as well as strengthen the company's international positioning through the penetration of new markets and application segments," Bonomi said.
"Investindustrial has already gained important experience both in the automation sector with the investment in Omnia Technologies, and in launching takeover bids in Italian companies in order to accompany them in ambitious long-term development projects, as it did with Guala Closures and La Doria in Italy."
Over the last few years, Piovan Group has managed to consolidate its position as one of the main global players in the development and production of production process automation systems, according to Nicola Piovan.
"In a constantly evolving market context, Investindustrial's skills and resources will be key factors in continuing and accelerating the growth path for the benefit of all stakeholders," he said.
Piovan has grown its market share in North America through acquisitions. It bought Universal Dynamics Inc. — UnaDyn — from Germany's Mann+Hummel GmbH in 2008.
The big move came in 2022 when Piovan bought Cranberry Township, Pa.-based IPEG Inc. to strengthen its position in the global auxiliary equipment market.
IPEG had owned Conair, Thermal Care, Pelletron and Republic Machine.
That deal called for an initial payment of about $125 million and up to another $22 million as a potential earnout based on EBITDA targets.
At the time, Piovan said the combined companies would have sales of about €451 million ($509 million) and a workforce of more than 1,800 employees operating 14 facilities worldwide.
This year, just before NPE2024, Piovan started simplifying its brand architecture, a move designed to underline the corporate identity of the Piovan Group while continuing to respect the individual brands.