Information on the Target

Wateralia is a prominent global leader in the design and manufacturing of water pumps, catering to the integrated water cycle. Established in 2022 through the merger of two esteemed Italian producers, Caprari and Calpeda, Wateralia operates under the ownership of Ambienta Fund III. This strategic consolidation has allowed Wateralia to leverage decades of expertise and innovation in the water management sector.

Under Ambienta's stewardship, Wateralia has experienced substantial growth, with EBITDA increasing sixfold and revenues tripling to exceed €300 million within just three years. The company currently employs over 1,000 individuals, maintains five manufacturing plants, and serves clients across more than 140 countries.

Industry Overview in Italy

The water management industry in Italy is characterized by a strong emphasis on sustainability and innovation. As one of the leading countries in Europe regarding water infrastructure, Italy is continuously investing in advanced technologies to enhance water efficiency and management resources. The Italian government has implemented policies that promote sustainable water usage, attracting significant investments in this sector.

Additionally, the growing awareness of environmental issues among consumers and businesses is driving the demand for sustainable solutions in the water management industry. Companies are increasingly focused on developing eco-friendly technologies and practices to reduce energy consumption and minimize waste.

Italy's strategic location within Europe also provides unique opportunities for companies like Wateralia to expand their market reach internationally. The country boasts a well-established network of supply chains and distribution channels that facilitate the export of goods to neighboring regions, further enhancing the growth prospects for water management solutions.

The industry's potential is further underscored by the European Union's commitment to ambitious sustainability goals, which encompasses water management as a crucial component. This regulatory framework continues to support innovation and growth within the sector, providing companies with substantial opportunities for investment and expansion.

The Rationale Behind the Deal

The acquisition of Wateralia by the Ambienta Fund IV and the Ambienta Water Pumps continuation vehicle aligns with Ambienta's strategic vision to champion sustainable growth within the water management sector. The investment aims to propel Wateralia's expansion through not only organic growth but also by pursuing strategic acquisitions of smaller players in the industry.

By enhancing Wateralia's global presence and product offerings, Ambienta seeks to capitalize on the growing demand for efficient water management solutions worldwide. The synergies created from increased market reach and innovation are expected to drive further financial success while also contributing positively to environmental sustainability.

Information About the Investor

Ambienta is recognized as one of Europe’s leading sustainability-focused investment firms, managing over €3 billion in assets. The firm has an extensive track record of identifying and capitalizing on investment opportunities driven by environmental trends, completing a total of 76 private equity investments to date.

Ambienta focuses on generating strong financial returns while simultaneously addressing pressing environmental challenges. By prioritizing sustainability, the firm has positioned itself as a key player in supporting companies that contribute to a more sustainable future, making measurable impacts through its investments.

View of Dealert

Dealert's perspective on this transaction is largely positive, viewing the investment in Wateralia as a strategic move in the context of the growing demand for sustainable water management solutions. The rapid growth in Wateralia’s financial performance under Ambienta’s guidance indicates a robust business model poised for continued success.

Moreover, the focus on international expansion and strategic acquisitions suggests that Wateralia is well-positioned to capitalize on emerging market opportunities. This proactive approach could enhance its competitiveness in a rapidly evolving industry that increasingly values sustainability.

In addition to financial considerations, Ambienta's commitment to environmental impact further bolsters the case for this investment. With Wateralia's products already contributing to significant energy savings and water accessibility, the partnership supports the dual goals of achieving profitability while fostering environmental responsibility.

Overall, the acquisition of Wateralia by Ambienta and its partners not only represents a strategic investment in a growing industry but also aligns with broader sustainability objectives. This dual focus on financial performance and environmental stewardship positions Wateralia as a potential leader in the water management sector.

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