London, 17 April 2012 - Real Deals Magazine has awarded Stirling Square Capital Partners the Private Equity Award 2012 (Mediterranean Deal of the Year) for its investment in Microtecnica.
The award is made annually by Real Deals Magazine in conjunction with CASS Business School for deals exited in the previous year. CASS Business School review all the private equity deal exits in the year and recommend those which demonstrate the best aspects of private equity ownership.
A pre-eminent panel of judges from the private equity market then determine the winner. For Microtecnica, the judges made particular reference to the multiple strands of change implemented during the period of private equity ownership and the text book example of value creation.
LONDON, 22December 2011 –The Italian Private Equity Association (AIFI) has awarded Stirling Square Capital Partners the 2011 private equity transaction of the year award (buy-out category) for its investment in Microtecnica. The award is made annually by AIFI in conjunction with Ernst & Young for the deal which best demonstrates the value creation potential of private equity ownership. In reviewing eight finalists, the judges noted a transformational change at Microtecnica during the period of Stirling Square ownership. This comprised the successful delivery of an operational improvement programme, the investment of increased levels of capital expenditure/R&D and the recruitment of a number of key managers to grow the business.
Stefano Bonfiglio, Partner at Stirling Square, said: “We achieved a true alignment of interest with the management team at Microtecnica led by CEO Alan Bean. It was the managers who saw the opportunity to transform the business, changes that could be delivered through accessing private equity capital and working with an international partner knowledgeable in the aerospace and defence sector. I wish the management team well for the future.”
Strategy of operational turnaround and increased investment has driven greater profitability
LONDON, 1 April, 2011 – Stirling Square Capital Partners (“Stirling Square”), the pan-European private equity firm, today announces that it has signed an agreement to sell Microtecnica S.r.l. (“Microtecnica” or the “Company”), the flight critical aerospace component and sub-system manufacturer, to Goodrich Corporation (NYSE:GR), a leading global supplier of systems and services to aerospace, defence and homeland security markets, subject to regulatory approvals.
Microtecnica is one of the world’s largest independent providers of highly engineered flight critical components to the global aerospace and defence market. The company designs and manufactures a range of components and sub-systems, primarily involved in flight actuation (the movement of flaps and other control surfaces), and thermal control systems for fixed wing and rotary aircraft.
Founded in Northern Italy in 1929, Microtecnica operates three facilities in Italy and an R&D office in the UK. At the time of the acquisition by Stirling Square, the management team, led by Chief Executive Alan Bean, was strengthened with a number key hires, including the appointment of Roberto Assereto as Chief Operating Officer and Roberto Hofmann as Chief Financial Officer.
Since Stirling Square acquired Microtecnica, annual capital expenditure was doubled and an extensive operational re-engineering programme was implemented, radically improving on-time delivery and positioning Microtecnica as a market leader for product quality and service levels. Annual R&D expenditure was also increased to levels well above that of prior years, resulting in a number of new programme wins, including the flap actuators for the next generation Mitsubishi Regional Jet and environmental control systems for the Saab Gripen Fighter Jet.
Under Stirling Square ownership Microtecnica revenue has grown 27% and EBITDA has trebled.
Stefano Bonfiglio, a Partner at Stirling Square, said: “We’re proud to have delivered impressive growth for Microtecnica, driven through investment in people, capex and R&D, to achieve the targeted levels of operational improvement. The company has grown to a position of strength over the past three years which is testament to the dedication of the management team and Stirling Square’s value creation expertise.
Microtecnica is highly representative of our core investment strategy which is to target companies with unique capabilities and long term defensible market positions that offer potential for transformational change. I’d like to thank everyone we’ve worked with at the business over the past few years and wish them the very best for future success.”
Alan Bean, CEO of Microtecnica, said: “Stirling Square has provided critical support, throughout the management buyout in 2008 and beyond. We have been able to invest in and change the company, resulting in improved operational performance, and positioning the company for success. I look forward to working with Goodrich to build on the achievements of the past three years.”
Advisers to Stirling Square Capital Partners:
Legal: Pavia e Ansaldo Studio Legale
Vendor Due Diligence Providers:
Legal: Pavia e Ansaldo Studio Legale
Tax: Studio Colacicco
Stirling Square Capital Partners ["Stirling Square"], the pan-European private equity firm, today announces the buyout of Microtecnica ["the Company"], the flight critical aerospace component and sub-system manufacturer, from Hamilton Sundstrand, a subsidiary of United Technologies Corp. [NYSE: UTX] for an undisclosed amount.
Established in Northern Italy as a family business, Microtecnica designs and manufactures a range of flight critical aerospace components and sub-systems, primarily involved in flight actuation (the movement of flaps and other control surfaces), where it is a technology leader. Microtecnica operates three sites in Northern Italy and employs 686 people. In 2007, the Company generated sales of €124m.
Microtecnica has a well balanced portfolio of civilian and military programmes (50:50 split) and is present on fixed-wing, rotary aircraft and other platforms including spacecraft and missiles. Microtecnica supplies to a highly diversified customer base, including Hamilton Sundstrand, Avio, Alenia, Bombardier, Airbus and AugustaWestland.
Stirling Square will support the existing management team led by CEO Alan Bean in consolidating Microtecnica’s relationships with Italian and European defence contractors and continuing to drive further growth beyond Europe.
Microtecnica is highly representative of Stirling Square’s core investment strategy which is to target companies with unique capabilities and long term defensible market positions that offer potential for further operational improvement and growth. Stirling Square intends to invest in further developing Microtecnica’s core technology and in supporting international growth.
The acquisition follows Stirling Square’s string of successful pan-European, complex mid-market transactions, including the investment and subsequent sale of Global Design Technologies (also an aerospace company) in May 2007 for $343m, the sale of Schoeller Arca Systems for €428m in July 2007. The sale of GDT was named ’France and Benelux Deal of the Year’ at the EVCA Private Equity Awards held in Barcelona in December 2007.
The transaction is Stirling Square’s third investment in 2008 following the acquisitions of Sicurglobal, the largest player in the Italian security service market, in May 2008 and Jeckerson, the global premium leisurewear brand, in June 2008.
Martin Calderbank, a partner at Stirling Square, said:
"This is a classic investment for Stirling Square and plays to our core strengths of backing first rate management teams who are committed to transformative operational improvement. It is a privilege to be backing Alan Bean, an excellent manager we have known for a long time. Stirling Square is committed to helping the company continue its expansion beyond Europe and we look forward to being a part of Microtecnica’s continued success".
Stefano Bonfiglio, a partner at Stirling Square, added:
"Microtecnica is a leading company in its specialist market which is well placed to benefit from international growth opportunities. The company has an impressive focus on key relationships with defence and aerospace manufacturers - an essential feature of long-term success in the aerospace component sector. We have been particularly impressed by the quality of Microtecnica’s management and have great confidence in them. We’re excited about making our own contribution to this success story."
Alan Bean, Managing Director of Microtecnica, said:
"Microtecnica has become a leading supplier of Actuation and Environmental Control Systems as a part of Hamilton Sundstrand. This announcement marks the beginning of another exciting chapter in the history of Microtecnica. Stirling Square is hugely experienced in working with companies to move them on to the next stage of growth and has experience in our sector. We look forward to an exciting future as an independent company and market leader."