The Salcef Group moves towards integration with Indstars 3

The Salcef Group S.p.A. and Industrial Stars of Italy 3 S.p.A. (Indstars 3) sign the framework agreement for a business combination, which represents the first step towards listing on the stock exchange.

 

Salcef opens its capital to the market, through a merger that will bring more resources for growth and further internationalisation. The agreement stipulates that the Salcef Group, subject to the approval of Indstars 3 shareholders, will incorporate Indstars 3 by November 2019 and, at the same time, will be listed on the AIM Italia market.

Indstars 3 is a listed SPAC (Special Purpose Acquisition Company), intended for integration with an industrial target company, which invests funds in development capital. In October 2017, the promoters’ team, made up of leading figures in the financial sector with extensive experience in similar operations, raised €150 million from Italian and foreign investors, of which €100 million is for the business combination with Salcef. When the merger is completed, current Salcef shareholders will retain over 70% of the share capital.

Indstars 3 wants to invest in the industrial group headed by Salcef, made up of seven companies located in Italy and abroad, a leader in the Railway Systems and Technology sector. In the words of Indstars 3: "...Salcef stands out among the many companies we considered, for the excellence of all its financial indicators, its management quality, the high barriers to entry of the sector in which it is firmly positioned, and its important experience in the field of acquisitions".

In 2018, the Salcef Group achieved a production value of 319 million euros, an EBITDA of 64.6 million and a net profit of 29.4 million. The Group's high and sustainable margins show an EBITDA margin of around 20%. The backlog is over 2.3 times the 2018 turnover. Over the last four years, the Group has recorded an average annual growth in the value of production of 23% and an EBITDA of 53%.

Gilberto and Valeriano Salciccia, the President and CEO of Salcef respectively, expressed their great satisfaction with the agreement: "... access to the stock market opens up a new horizon for the strategic development of the Salcef Group which, backed by a young and cohesive management team, it is ready to seize the opportunities offered by a sector in strong growth on the global market".