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.
