FAAC, an Italian multinational leader in the
vehicular and pedestrian access automation and control sector, announces they
have signed a binding agreement as a result of which they will acquire from
Israeli private equity fund TENE Capital, Afcon group and a series of minority
shareholders, all of the shares of TIBA group, a leading international operator
for the supply of complete pay parking management systems.
In particular, the TIBA group designs, produces, distributes and supports flexible, reliable and innovative solutions for all off-street pay parking management needs. Their general headquarters are located in Tel Aviv, Israel, where the research and development centre is also located, however much of the profit comes from North America where, in just a few years, it has managed to become a leader with over 20% of the market share. 2020 is expected to end with a turnover of over $60 million, with an annual growth of 30% over the past 5 years. The commercial strategy of the TIBA group, based mainly on an indirect model entailing the collaboration with an experienced network of independent distributors and installers, perfectly matches the presence of FAAC in the Country, based mainly on a direct model and operating in areas complementary to those of the acquired company thanks to the HUB Parking Technology division.
“The acquisition of TIBA is of extreme strategic importance for us, as it enables us to intensify our investments in a business segment that has had suboptimal volumes for us so far, but which we consider essential as it will strengthen our position on the largest and most profitable market in the world, thus rebalancing the centrality of the historical access automation business and mature European markets within our portfolio,” commented FAAC CEO Andrea Marcellan. “We are expecting significant synergies already in the short-medium term when it comes to the commercial, operational and product aspects.”
“It is another great transaction for the group in such a difficult year for the entire business community, which was though strongly desired as it was totally in line with our strategic vision and the mission that was assigned to us, i.e. to continue growing with a primary role on a global level in the supply of state-of-the-art solutions for sustainable mobility that respect people, the environment and the strictest ethical standards,” stated President Andrea Moschetti.
The transaction, which will include an outlay of $135 million in addition to the acquired net cash, was partly financed by our own means and partly leveraged.
“There could not be a better moment to opt for leverage financing, as the current debt market conditions are unprecedented and extraordinarily favourable, and the exchange rate we managed to obtain for the conversion of the funds into Dollars is much more advantageous than we had initially expected. Overall, the group maintains its sturdy financial balance and the leverage finance will actually improve the capital structure, which had been rather unbalanced on the equity side up to now, and the potential for an additional recourse to debt remains largely unused.”, commented FAAC CFO Ezechiele Galloni.
With this acquisition, FAAC adds another element to its considerable track record concerning both internal and external lines (12 acquisitions over the past 10 years, the latest and largest of which in terms of turnover acquired just 6 months ago), reaching a consolidated estimated revenue of over €620 million and a workforce of over 3,400 employees. Founded in 1965 by Giuseppe Manini in Bologna, FAAC is today an international group led by a well-tested and highly motivated management team, operating on 5 continents and in 27 countries with over 50 companies and 8 main production sites.
The transaction is subject to the usual closing conditions, the closing is expected within mid-January 2021.