CIE Automotive Acquired Somaschini
09 January 2020
Italy-based gears specialist Somaschini has been acquired by CIE Automotive Group headquartered in Bilbao, Spain.
Somaschini has nearly 300 employees and estimated 2019 sales of approximately €70 million. The company manufactures gears for mobile applications out of three production plants: two in Bergamo (Italy) and another one in South Bend, Indiana (USA).
CIE Automotive reported that the value of the transaction amounted to €79.6 million Euros (equivalent to less than 5 times the EBITDA of the current year) and will be adjusted upon the closing date based on its indebtedness, as usual in this type of transactions. The price of the transaction will be paid by CIE Automotive in cash upon the closing date and will be financed through currently available cash.
Jesús María Herrera, CEO of CIE Automotive, said: “The integration of Somaschini with our Italian Metalcastello plant and our Indian gears division means the creation of a world top player of gears with presence in the three big markets – Europe, North America, Asia – and in several segments – automotive, industrial vehicle, agricultural, off road –, which is currently a huge competitive advantage to offer global supply to our customers.”
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