Target Information

SKA, a company specializing in the production of poultry farming systems, controlled by the Industry 4.0 Fund managed by Quadrivio Group, has announced its acquisition of a 60% stake in Avitech srl. Avitech is a leading Italian firm focused on the design and production of systems for poultry farming. The sellers include Agritech srl, which holds an 82% stake owned by President Floriano Zappettini and 18% by Giovanni Tosi. Additionally, COO Mauro Bellini and Giuseppe Ruggeri each hold a 15% stake. Following the acquisition, Zappettini and Bellini will continue to serve within the management team.

The legal due diligence and contractual aspects for SKA and the Industry 4.0 Fund were supported by the law firm Fivers, while financial and tax due diligence was carried out by MAC-LAB. Geco e Associati conducted labor due diligence, and the sellers were advised by the Brescia-based law firm Associato Piccinelli & C.

Industry Overview

Avitech was established in early 2021 by professionals with extensive experience in the poultry sector. The company produces structures for laying hen farming, utilizing both traditional and alternative cage-free systems, as well as chick rearing facilities and egg transportation systems. Avitech manages the entire production process, from design and development to installation, providing a wide range of services aimed at delivering highly customized products that adhere to animal welfare regulations.

The Italian poultry industry is experiencing significant growth, buoyed by the increasing demand for sustainable and ethical food production practices. With a projected turnover of €8 million in 2025 and a double-digit margin, Avitech shows potential for a robust financial future.

In recent years, there has been a shift towards humane farming practices, pushing producers to adopt innovative solutions that respect animal rights. This trend has supported the emergence of firms like Avitech that focus on creating better conditions for livestock.

Overall, the poultry farming sector in Italy is advancing, driven by technological innovations and changing consumer preferences, which seek both quality products and ethical practices.

Rationale Behind the Deal

The acquisition of Avitech allows SKA to strengthen its market position and enhances its product offerings in the poultry sector. According to Roberto Crapelli, managing partner of the Industry 4.0 Fund and president of SKA, this buy-and-build strategy is aimed at accelerating value creation within SKA. The acquisition is perfectly aligned with SKA's business model, enabling the firm to expand its product range and gain high-value expertise in the supply chain.

Investor Information

The Industry 4.0 Fund, managed by Quadrivio Group, focuses on investing in technological innovation and digital transformation within small and medium-sized enterprises. Having invested in SKA in 2022 and further expanding its portfolio through acquisitions like Isa srl and Isa Montaggi srl, the fund aims to enhance its companies' competitive edge in the market.

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This investment could prove to be a significant opportunity for SKA, as integrating Avitech's advanced solutions into its portfolio allows for enhanced capabilities in addressing the needs of modern poultry farming. Moreover, this acquisition grants SKA access to new markets and clients that were previously unreachable, thereby expanding its customer base and revenue potential.

SKA's strategic vision of consolidation in the poultry industry positions it favorably to capitalize on current trends and demands. By bringing onboard experienced professionals from Avitech, SKA not only enriches its technical and commercial expertise but also solidifies its industry leadership.

With ongoing investments to improve production capabilities, SKA is on track to internalize Avitech's production and realize industrial synergies that will enhance product quality and competitiveness in the market. Observing the robust demand for ethically produced poultry products, the integration of Avitech within SKA can create a significant impact, making it a potentially sound investment.

In summary, this acquisition represents a strategic step forward for SKA as it fortifies its position within the poultry farming sector, paving the way for innovative solutions and increased market share.

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