An agreement for the sale of the assets MG Mini Gears S.p.A of Padua, Italy and Suzhou, China, has been signed between parent company Carraro Group and the German investment fund Finatem. The total value of the transaction is reported as approximately €28 million and is scheduled for completion by May 31, 2014.
It was agreed that as a result of this transaction the two production companies, specialising in the production of Powder Metallurgy (PM) gears, will cooperate jointly with Herzog GmbH, a company focused on components and gears based in southern Germany and already controlled by Finatem.
“This is an important step for the Group towards a further focus on our core business, which in these years registered very positive results both in terms of volumes and margins and that shows attractive growth perspectives already in the medium term,” stated Enrico Carraro, Chairman of miniGears’ parent company Carraro Group.
“We chose an industrial partner that could ensure business continuity and growth perspectives,” added Carraro. “The future of miniGears with the German company Herzog, with strong expertise on gears, will allow the two plants in Padua and Suzhou to find new development areas in technological sectors similar to its own ones, in the frame of diversified and complementary application markets.”
With its head office in Padua, and an operational plant in Suzhou (China), miniGears is specialised in the production of small Powder Metallurgy gears for a range of different sectors from automotive to professional gardening and power tools. The two plants employ a total of 526 people (280 in Padua) and reported a total turnover of 69.8 million Euro in 2013.