Information on the Target

Gruppo Siti B&T (“Siti”) is a prominent Italian manufacturer specializing in the production of turnkey plants and machinery, alongside providing related aftermarket products and services tailored for international ceramic tile, mineral stone, and quartz slab manufacturers. Founded in 1961 and headquartered in Formigine, Italy, the company is managed by the Tarozzi family and boasts a robust global presence. Siti plays a crucial role in the ceramic and quartz industry, designing, constructing, and selling complete production lines and machinery.

Employing approximately 660 full-time staff, with an additional 150 outsourced personnel, Gruppo Siti B&T operates 16 offices across the globe and maintains 10 production facilities. The company serves a diversified customer base of over 2,500 manufacturers worldwide through its esteemed brands, which include Siti, Ancora, Projecta, Digital Design, Diatex, and Mec Abrasives. Siti also focuses on after-sales services, offering maintenance, spare parts, and upgrades to ensure optimal functioning of its machinery.

Industry Overview in Italy

The ceramic machinery industry in Italy has historically been a cornerstone of the country's manufacturing sector, known for its innovation and high-quality production standards. The industry has seen significant advancements over the years, with firms adapting to technological changes while focusing on sustainability. Urbanization trends have fueled demand for ceramic products as construction activities expand.

Moreover, the push for more cost-effective and environmentally sustainable products has led manufacturers to invest in advanced machinery capable of enhancing production efficiency. Italy is viewed as a leader in the sector, leveraging its rich heritage of ceramic craftsmanship and contemporary technology to maintain its competitive edge.

The demand for ceramic and quartz products is expected to grow, bolstered by global trends towards modern architecture and interior design that favor aesthetically pleasing and durable materials. This trend reflects a larger shift across industries, emphasizing the need for high-quality, sustainable, and cost-efficient goods.

Additionally, Italy's robust support framework for manufacturing and export, including government incentives and access to skilled labor, positions the ceramic machinery sector favorably for future growth prospects. This backdrop provides significant opportunities for companies such as Gruppo Siti B&T to expand both domestically and internationally.

The Rationale Behind the Deal

One Equity Partners (“OEP”) has acquired a substantial minority interest in Gruppo Siti B&T, aiming to accelerate the company’s growth trajectory. The partnership comes at an opportune time, given the favorable market conditions and rising demand for advanced ceramic solutions. OEP’s established track record in the manufacturing sector offers valuable strategic guidance that is expected to facilitate intense organic growth and targeted acquisitions for Siti.

Fabio Tarozzi, Chairman and CEO of Gruppo Siti B&T, noted the importance of having a partner like OEP, emphasizing that the firm’s investment will empower Siti to capitalize on identified growth opportunities, thereby ensuring the company remains at the forefront of the industry.

Information about the Investor

One Equity Partners is a distinguished middle-market private equity firm specializing in sectors such as industrial, healthcare, and technology across North America and Europe. The firm is dedicated to building market-leading companies via transformative business combinations, showcasing a highly differentiated investment process and a complementary team of seasoned professionals.

Since its establishment in 2001 as a spin-off from JP Morgan, OEP has successfully completed over 400 transactions globally. With offices in major financial hubs, including New York, Chicago, Frankfurt, and Amsterdam, the firm continues to leverage its extensive experience to foster growth and innovation across its portfolio companies.

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From an investment standpoint, the acquisition of a minority interest in Gruppo Siti B&T by One Equity Partners presents a compelling case for positive returns. The ceramic machinery sector is poised for growth, especially with the ongoing trends toward urbanization and sustainable product demand, which align perfectly with Siti’s capabilities and market positioning.

The strategic partnership also enhances Siti's potential for expansion through M&A, allowing access to new markets and technologies. OEP's deep industry knowledge and operational expertise will undoubtedly support Siti in scaling efficiently and effectively, setting the stage for long-term success.

Moreover, the company’s established global customer base and diversified product offerings provide a solid foundation for future revenue streams. As such, this partnership is not only beneficial but essential for Siti to navigate the competitive landscape and seize emerging opportunities in the ceramic industry.

In conclusion, considering the dynamics of the industry and OEP's capabilities as a partner, this investment could be highly advantageous, driving growth and innovation within Gruppo Siti B&T while yielding favorable outcomes for One Equity Partners.

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