30 September 2021Place:
CP Advisors acted as the exclusive financial advisor to MIGAL Group on the acquisition of TMV, a leading producer of cold forged and machined components for the high precision industries
Founded in the 70s, TMV is a leading high precision components manufacturing player known for its cold forging technology and automatized mechanical processes, such as blanking, bending, coining, drawing, assembly, milling, etc. TMV serves various sectors including sports, automotive and precision engineering in general. The Company operates through a production plant located in Gardone Val Trompia (BS), which includes presses ranging from 60 to 200 tons.
The MIGAL Group, consisting of MIGAL S.r.l., Metal Technology S.r.l. and Zucchetti Mario SpA, is a leading European player in the engineering, design, production and processing of components in non-ferrous materials such as brass, copper and aluminum, serving various vertical markets ranging from the water, gas and electricity sectors, with an important customer base. consisting of international blue chips such as Comet, Honeywell, Itron, Interpump, Rotarex, Schneider, Siemens, etc. With over 260 employees and three production plants, in 2021 the MIGAL Group will exceed € 100 million in revenues with an EBITDA of € 18 million.
With the integration of TMV, the MIGAL Group, already specialized in the hot forging technology, expands its technological solutions with the addition of the cold forging, further strengthening the production and organizational structure to meet the growing demands of current clients. The acquisition of TMV will further produce important synergies due to the development of cold forged products mainly addressing the electrical market, where the MIGAL Group is already present and aims to grow in the coming years, diversifying the product range for customers such as Honeywell, Schneider, etc.
Growth through strategic acquisitions is a fundamental component of the MIGAL Group's DNA; no later than 2019, the Group, led by the CEO Luca Mingotti, completed the acquisition of ZMF S.p.A. to expand the production capacity in the hot forging technology. The strategic vision of Luca Mingotti led also to the creation of the partnership with Equinox private equity in July 2021, which purchased 60% of the Group, leaving the strategic leadership of the business on the hands of the Mingotti family, which retained a 40% shareholding.
The CP Advisors team, led by Salvo Mazzotta and Marco Garro, and coordinated in the transaction by the director Giovanni Nucera, originated and managed the acquisition assisting MIGAL Group.
MIGAL Group CEO Luca Mingotti reported that "the transaction is part of our diversification and growth strategy to expand the product range and to offer greater coverage and penetration to current customers. TMV represents a first step in the implementation of the growth strategy designed in collaboration with our financial partner, Equinox. We are assessing several dossiers and investment projects to continue on these strategic directions"
Commenting on the transaction, Salvo Mazzotta, Managing Partner of CP Advisors added: “With considerable personal and professional satisfaction from our team, we are thrilled to continue to successfully assist the shareholders and management of MIGAL Group as their trusted advisor. The transaction is part of the equity story already defined with the arrival of Equinox, the financial partner selected by the Mingotti family last July, to support the Group’s growth strategy. Thanks to the support of Equinox , this operation represents the first add-on of a larger industrial project which will be completed over the coming years”.