Link Securities | Cie Automotive will acquire 100% of the social capital of Somaschini S.p.A. The enterprise value is 79.6 million euros, equivalent to less than five times EBITDA for this year, and will be adjusted at closure of the deal depending on its indebtedness, as is usual in this type of operation.
The price of the operation will be paid by CIE in cash on the closure of the deal and will be financed through currently available cash. With around 300 employees and sales for 2019 estimated at approximately 70 million euros, Somaschino has three factories, two in Bergamo (Italy) and one in Indiana (US). The company specialises in the manufacture of gear systems, whose applications include sectors like transport and car manufacture, as well as industry and robotics.
Evaluation: although the acquisition is of lesser importance than other recent acquisitions, like Inteva Roof Systems, the news is positive for CIE, which maintains its bid to integrate companies which operate in its sector and to combine 50% organic growth with 50% inorganic growth through these acquisitions. We are currently drafting an update report on the company, in which we will evaluate this acquisition.