FountainVest has received approval from the Italian government to acquire a controlling stake in EuroGroup Laminations, paving the way for a strategic partnership aimed at enhancing growth in the electric vehicle sector.

Target Information

FountainVest, a Chinese private equity firm, has recently received approval from the Italian government to acquire a controlling interest in EuroGroup Laminations. This transaction marks a significant milestone after months of regulatory scrutiny under Italy's golden power regime, which is designed to oversee transactions involving strategic assets. FountainVest will purchase a 45.7% stake from EMS Euro Management Services at a price of €3.85 per share. Notably, EMS will reinvest 50% of the sale proceeds into a newly created holding company, which will be co-owned with FountainVest. Pending completion in the first half of 2026, this partnership will control 55.3% of EuroGroup Laminations' voting share capital.

Industry Overview in Italy

Founded in 1967 near Milan, EuroGroup Laminations specializes in manufacturing stators and rotors utilized in electric vehicles (EVs) and industrial machinery. This market has gained significant traction as global demand for electric mobility continues to rise, spurred by both regulatory incentives and consumer interest. EuroGroup Laminations first attracted private equity attention in 2020, exemplified by Tikehau Capital’s acquisition of a 30% stake through its energy transition fund. The company went public in 2023, raising €250 million by pricing shares at €5.50, which valued the firm at approximately €922 million.

However, recent challenges, including slower-than-anticipated EV adoption and increasing geopolitical tensions impacting global supply chains, have led to a substantial decline in EuroGroup's market capitalization, which has fallen by roughly two-th