Italian Sogefi sells Filtration Business Unit for $404.93 million

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AK&M 27 February 2024 18:08

Sogefi Group, an Italian filtration systems company, has entered into an agreement to sell the Filtration Business Unit to the American private equity fund Pacific Avenue Capital Partners. This is reported in the Sogefi press release.

The transaction value is 374 million euros ($404.93 million), of which 50% will be used to reduce the company's debt in the amount of 266.1 million euros and to strengthen its financial position, which will increase investments in further development.

The deal is aimed at increasing the value of the Filtration Business Unit as part of a program to optimize assets and eliminate unprofitable activities. In addition, the deal will reduce the share of powertrains in the group's business portfolio and diversify its activities by focusing on two sectors with high potential (suspension production and cooling systems production), which demonstrate positive growth indicators.

Carta Acquisition France S.A.S. and Carta Acquisition U.S., Inc., corporate entities managed by Pacific Avenue Capital have committed to acquire the business segments of Sogefi Filtration S.A. and Sogefi USA Inc. After the deal closes, the Filtration Business Unit will operate under the Purflux Group brand.

The transaction is expected to be completed within six months, subject to regulatory approval. Houlihan Lockey, Clifford Chance and BNP Paribas are acting as advisers to Sogefi as part of the deal.

Filtration Business Unit produces a full range of filters and spare parts for original equipment and independent aftermarket. In particular, the after-sales service division provides spare parts for cars under the brands CoopersFiaam, Tecnocar, FRAM and Purflux for light vehicles and SogefiPro for commercial vehicles. Filtration Business Unit is part of the Sogefi Group structure.

Sogefi Group is an Italian company producing original spare parts for the automotive industry. Sogefi designs, develops and manufactures filtration systems and flexible suspension components, as well as air conditioning and engine cooling systems. The company's profit in 2023 increased to 1.6 billion euros from 1.5 billion euros in 2022. The headquarters is located in Milan (Italy).

Pacific Avenue Capital Partners is a private equity firm headquartered in Los Angeles, California.

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