Transaction

SCOUTING CAPITAL ADVISORS WITH CHERRY BAY CAPITAL GROUP: A CLUB DEAL IN TECNOMATIC SPA

  • Scouting Capital Advisors, an independent international firm active in corporate finance and M&A, through Scouting Capital Advisors has participated, as financial co-advisor with Cherry Bay Capital Srl, in a club deal transaction with Tecnomatic S.p.A.
    Tecnomatic is an international leader in the design, development and industrialization of winding systems for stators dedicated to electric cars through the so-called hairpin technology, in addition to the more traditional alternators and generators for traditional transmission.
    Scouting Capital Advisors participated in the transaction with a team coordinated by Marco Musiani, Managing Partner.
  • The transaction structure has funded an investment of 17.5 million euros, part through the acquisition of shares already issued, part in capital increase with the subscription of a minority stake and of a convertible bond.
  • Tecnomatic Spa produces winding systems for electric motor stators in various fields of application and assembly lines for turbo compressors including E-Turbo. With more than 47 years of experience in the sector, it boasts skills that extend from general specifications to final design and performance evaluations. The company can count on an internal department of technicians totally dedicated to the realization of prototypes, machines and test instrumentation for the entire winding process and for the testing of both stators and finished electric motors; it also deals with the optimization of the final product for the production system. Tecnomatic Spa is based in Abruzzo, has a staff of 140 employees and an R&D department specialized in the patented design and production processes of stators with hairpin technology.
  • Cherry Bay Capital Group is an independent player active in private capital and asset consulting dedicated to selected international clients. Born in the Principality of Monaco and now present in several jurisdictions, CBC Group and its professionals have a proven track record in private equity, investment banking, strategic consulting, and wealth advisory services and have built an important network of families with successful business histories. Cherry Bay Capital Srl, an Italian-based company of the group that operates through a model at the intersection of private and investment banking, with a particular focus on Private Equity investments at the service of HNWI and Family Office.
  • The automotive electrification market (according to McKinsey, the global market for electric vehicles has grown to a CAGR of 59% between 2014 and 2018 reaching 2 million vehicles sold and only the major OEMs will launch 400 new electric vehicles by 2023) foresees the adoption of hairpin technology as a reference standard by the major car manufacturers.
  • In this scenario, thanks to the leadership gained by Tecnomatic through continuous and consistent investments in research and development and the competitive advantage achieved also thanks to the significant patent assets, the Company is in a position of great competitive advantage. The investment in club deal, aimed to further increase investments in production capacity, will allow the Company to take advantage of growth opportunities going beyond the historical data already acquired that have seen during the two-year period 2018 and 2019, a production value of about 30 million euro with an Ebitda Margin Adj of over 20% and an excellent ability to generate cash.
  • With these premises, the investment aims to consolidate the Company’s international leadership by supporting organic expansion through the construction of a new production plant and growth by external lines through acquisition operations partly already identified.
  • Cherry Bay Capital Group involved KPMG with a team composed of Massimiliano Di Monaco, Partner, and Dario Marasco, Senior Manager, for financial due diligence, and Fabio Avenale, Partner, and Gabriele Davi, Manager for fiscal due diligence. The law firm DWF Italy intervened in the legal due diligence with a team composed by Luca Lo Po’, Partner and Mario Distasi, Senior Associate. Finally, as legal advisor CBC Group was assisted by Stefano Serbini, lawyer. The firm Capitani Picone intervened with a team led by Luigi Capitani.