Giorgio Carere
Ethica Group
Elettronica Santerno S.p.A.
Deal Type
Company sale
Sector
Energy & Sustainability
Completion Date
30th November 2016
Deal Value
Not disclosed
Company Background
Founded in 1970, Elettronica Santerno S.p.A. (“Santerno”) designs and markets inverters for the production of electricity from renewable sources, drives and soft starters for industrial and hybrid applications.
Santerno became part of Carraro Group (listed on the Italian Stock Exchange) in 2006, and in just a few years, came to rank among the market leaders in the photovoltaic inverter sector, with the company's turnover growing from €11.6 million to more than €140 million. The sudden crisis that hit the sector forced the company to undergo a process of rapid downsizing, reducing the number of individuals employed from 250 in 2010 to 124 today, in parallel with the sharp decline in volumes which led to a drop in turnover, to €35 million.
The business mainly consists of a production plant located in Castel Guelfo, near Bologna, with branches in Spain, Russia, USA, Brazil, India, China and South Africa.
Deal Summary
Ethica Corporate Finance advised Carraro Group on the sale of the 51% stake of Elettronica Santerno S.p.A. to Enertronica S.p.A., a company operating in the renewable energy and energy saving sector, responsible for designing and manufacturing electromechanical systems. Enertronica S.p.A. is listed on the Milan Stock Exchange - AIM Italy.
The Sale and Purchase agreement also stipulates the terms and conditions for the exit of Carraro from Santerno after an initial 24-month "lock-up" period, designed to ensure the stability of Elettronica Santerno and the implementation of the Business Plan drawn up between the parties.
By selling Santerno - non-core versus overall group activities - Carraro completes a reorganization process, refocusing on its core business, in the perspective to grow in its key reference markets by investing primarily in the development of technological solutions for agricultural mechanization and placing renewed emphasis on R&D activities.
Value Added
After several attempts to find a solution, Carraro Group’s shareholders appointed Ethica Corporate Finance to prepare, conduct and complete this quite complex divestment. Ethica advised Carraro on identifying the right candidate for a crucial transaction, supporting the sellers in every phase of the negotiations, until the completion of the deal. In selecting Enertronica, Ethica has sought to trigger a process that could restore growth to Santerno, which still boasts advanced technological solutions that are favoured by an international client base.
This transaction emphasizes Ethica’s customer-oriented culture, this deal being the 3rd transaction advised for the Carraro Group since 2014.
Latest Mergers Alliance News
Khronos Advisory (Thailand) has advised Electricity Generating Public Company Limited (EGCO) on USD95 million capital increase in PT Chandra Daya Investasi
Dresner Partners (USA) advised Connoisseurs Products on its sale to Willert Home Products
Ethica Group (Italy) advised Vicenza Mode, high-end knitwear manufacturer, in the sale of a majority stake to Sienna PE
