BS Private Equity buys Italian transmission business

The fourth deal of the year for the Italian mid-market firm takes them closer to launching fundraising as its current fund is 80 percent committed.

BS Private Equity, through its fund BS Investimenti IV, has purchased a majority stake in Motovario, a power transmission producer, from Power Transmission Finance, a family-owned industrial conglomerate which will re-invest in the transaction.

No price was disclosed. The acquisition of Motovario is the fourth investment of BS Private Equity completed in 2006, following Arena Sportswear, Ducati Motor and Tecnowind.

Motovario is expected to report a turnover of €110 million in 2006, with an EBITDA of €24m. Its offer is focused on products for civil and industrial applications, and includes gearboxes and electric motors. The group employs 525 people.

Italian banks Unicredit Banca d’Impresa and Banca Popolare dell’Emilia Romagna arranged the debt facilities to fund the acquisition, supported by Ashurst for the legal advisory.

Francesco Sironi and Michela Valsecchi managed the transaction for BS Private Equity.

BS Private Equity has completed 14 investments with its latest fund of €550 million BS Investimenti IV for a total equity commitment of approximately €400 million.