Carlyle realises Riello holding

The Carlyle Groups has sold its 50 percent interest in Italian burner and boiler manufacturer Riello Group to the Riello family.

Global private equity investor The Carlyle Group this week announced the disposal of a 50 percent equity interest in Sigla Engineering. Sigla is the holding company of Riello, a Legnago, Italy-based maker of domestic burners and boilers.

According to a source close to the deal, the transaction values the business at approximately €600 million. Carlyle has doubled its equity investment from the realisation, the source added.

Carlyle sold its stake in the business to Ettore, Lucia and Roberta Riello, who already controlled the remaining 50 percent of the business.

The Washington, DC headquartered private equity provider invested in the company in 2000, enabling Ettore Riello to lead the buyout of other family members from the company.

Since then, Carlyle has worked closely with its family partner to develop the business strategically. Earlier this year, the group participated in the auction of Baxi, one of Riello’s main European competitors, with a view to combining the two businesses. Baxi, which at that point was owned by UK private equity groups Candover and Electra Partners Europe, was eventually sold to BC Partners, with Electra retaining a stake.

Riello is the fifth realisation from Carlyle’s Europe Fund I, a €1 billion partnership raised in 1998. The firm is currently raising a successor fund for Europe with a €2.5 billion target.