Comer Industries, manufacturer of technical systems and mechatronic solutions with headquarters in Reggiolo, Italy, is acquiring 100 percent of the Walterscheid Powertrain Group (WPG) shares from the parent company WPG Holdco. Upon completion of the transaction, a leading agricultural machinery supplier will be created, which will be listed on the Italian stock exchange.
The group resulting from the merger will be expected to have sales of €792 million based on the aggregated sales figures as of December 31, 2020. The agreement stipulates that the acquisition will take place in return for a consideration of around €203 million, with cash expenses of €40 million. In addition, WPG Parent, currently the only shareholder in WPG Holdco controlled by the private equity fund One Equity Partners (OEP), will be included in the capital of Comer Industries with a 28 percent stake.
The Storchi family, owners of Comer, has confirmed their long-term commitment by retaining control of the group with a majority stake of 51.05 percent.
“The strong rebound in the agriculture and construction equipment sectors, along with rising food production, a greater reliance on wind energy and increased outsourcing by OEMs will provide strong secular tailwinds to support the growth of the combined business for years to come,” said Joseph Huffsmith, Managing Director of OEP. “We believe that the combined company, with its increased scale and product portfolio, will be able to better serve its customers worldwide,” added Steve Lunau, Managing Director of OEP.
“OEP has been an outstanding partner to Walterscheid and instrumental in supporting our growth over the last two years. We’re delighted the firm has decided to remain an investor in the combined business” said Wolfgang Lemser, CEO of Walterscheid Powertrain Group. “Walterscheid and Comer share the same commitment to high quality customer service, safety, innovation and have highly complementary product portfolios.”
“We are thrilled to partner with Walterscheid and OEP,” said Matteo Storchi, Chairman and CEO of Comer Industries. “Our collective knowledge and experience in the industry will provide the right strategic, financial and operational resources for building on Comer’s core business and pursuing new growth opportunities that lie ahead.”
The transaction is expected to close in the fourth quarter, subject to antitrust approval and other customary closing conditions.