The automotive sector of Turin, the related industries that look with fear at the birth and future developments of the new auto giant, Stellantis, this time gives a signal of the will to resist and relaunch. Primotecs, a company that works in the design and manufacture of steel solutions for the transmission, for the engine and for other components, has obtained a bank loan of 8 million euros, backed by a Sace guarantee (Guarantee Italy). Primotecs was acquired in 2019 by Mutares, a private equity company based in Munich, listed on the Frankfurt Stock Exchange with strong automotive expertise (it has doubled its market cap in the last 12 months). The Villar Perosa-based company, 114 years of history, 70 million components delivered to customers every year, target of 90 million turnover in 2021 against 72 in 2020, was assisted by Hoshin Corporate Finance, appointed as debt advisor , to identify potential financiers by assisting Primotecs in structuring the transaction. Hoshin is a financial advisory boutique specialized in debt advisory, founded in 2019 by Massimo Boccoli and Alberto Maria Morra.
Thanks to the financing, Primotecs will be able to invest in the two plants of Villar Perosa and Avigliana, in the Turin area, one of the most fertile areas in Italy for the auto sector (struggling with the fallout from the birth of the giant Stellantis and with the changes imposed by electrification) , and improve its production capacity with a view to Industry 4.0. The operation has a total duration of 6 years, with 3 years of pre-amortization and 3 years of repayment.
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«We are proud to be able to make our contribution to the relaunch of a strategic and historical company like Primotec. – declared Alberto Maria Morra, founding partner of Hoshin Corporate Finance -. Tools such as the one provided by Sace’s Italian Guarantee can help our businesses flourish. In this context, especially after the health emergency, financial consultancy with an analytical and performance-oriented approach, such as the one implemented by Hoshin Corporate Finance, becomes essential to act as a link between the banking and production system. The former, thanks to the Sace guarantee, can reduce the risks associated with the investment, while the latter can more easily obtain essential financing to establish itself on the markets and embrace technological evolution. A win-win solution that can help Italian SMEs to restart their engines ».
Already in the Fiat Group as Teksid, Primotecs boasts one of the most important fleet in Europe. After difficult years, the company moved to Mutares in 2019, which put its experience in the recovery of the company on the field, bringing the total recapitalization to around 40 million euros. The German holding has focused decisively on Primotecs, which is now part of an international group capable of also guaranteeing great potential for cross-selling with other investee companies, as well as being able to already count on a number of customers of primary standing.
Since the German investment player, with a capitalization of 340 million, has taken control, Primotecs has launched the new Business Plan 2020-2025, with the aim of expressing its full potential and enhancing corporate assets. A strategic plan that began with the appointment of the new CEO, Eric Outhier, a mechanical engineer with 25 years of experience in the industrial and automotive sectors, the intervention of interim managers and specialists from industrial and corporate sectors. , production was halted between March and May 2020, delaying revenue growth. But already in the first quarter of 2021 the revolution desired by Mutares, which has the main investment target in European SMEs with untapped potential, is starting to bear fruit, with forecasts at the end of the year showing a growth in turnover up to share 90.5 million euros.