The deal, which is based on an enterprise value of approximately 150 million euro, consolidates Sogefi’s presence in the international markets and boosts its position in air intake and engine cooling systems thanks to a broader and more integrated range of solutions.
Milan, June 21 2011 - Sogefi (CIR group), one of the leading world operators in the sectors of filters and suspension components for motor vehicles, has signed an agreement to buy the French automotive components group Mark IV Systèmes Moteurs from its American holding company Mark IV, LLC.
Mark IV Systèmes Moteurs is one of the largest producers of air intake and engine cooling systems in the world with revenues of around 270 million euro in 2010 and some 1,200 employees. Supplier to the main world car manufacturers, the group has seven production plants (three of which are in France while the others are in Canada, Mexico, Romania and India), two research, development and innovation centres (in France and the United States) and is currently building a new production site in China. The parent company of the group Mark IV Systèmes Moteurs SA has its headquarters in France.
Mark IV Systèmes Moteurs generates around 78% of its revenues in Europe, has an increasing share of the market in North America and has started expanding in strong-growth countries such as China and India. The deal was concluded on the basis of an enterprise value of the Mark IV Systèmes Moteurs group of approximately 150 million euro. Sogefi will finance the acquisition by drawing on the credit lines it already has in place, maintaining a solid equity and financial structure.
The finalization of the agreement, which is expected in the third quarter, is subject to the usual conditions precedent, including the approval by the competent antitrust authorities. Following completion of the deal, the Sogefi group is expected to reach total pro-forma revenues for the year 2011 of around 1.3 billion euro. “
"With the acquisition of Mark IV Systèmes Moteurs – commented Rodolfo De Benedetti, Chief Executive of the CIR group and Chairman of Sogefi - Sogefi has gained an important opportunity to grow internationally and integrate its technology, in demonstration of how it has strengthened its competitive position after the recent crisis in the sector. Sogefi, a world leader in its businesses with over 90% of its revenues generated abroad, is an Italian company which is meeting the challenge of global competition very successfully. This deal continues a thirty-year history of technological development, operational efficiency and expansion into new markets. We will continue to follow this route in the future too”.
“The agreement announced today – stated Emanuele Bosio, Chief Executive of Sogefi – will enable us to reach an objective in terms of competitive positioning that is fundamental for Sogefi’s future development prospects: Mark IV Systèmes Moteurs has a product range that is a perfect complement to our own. This acquisition will enable us to complete our range of solutions and to present ourselves to car manufacturers as a supplier of integrated engine systems”.
Following completion of the transaction, in compliance with current regulations Sogefi will publish an information document that will include, among other things, the financial statements of Mark IV Systèmes Moteurs.