Pompe Gabbioneta sold to Weir

Aksia Group, the Italian mid-market private equity firm and BancBoston Capital have sold Milan-based specialist oil pump company Pompe Gabbioneta SpA to engineering giant Weir Group for €100m. Italian fund-of-funds Fondamenta State Street Global Investments was also a shareholder and has also sold its stake in the company.

The total amount invested in the company was € 23.4m. Aksia group invested € 13.5m, BankBoston €8.3m and Fondamenta €0.7m.Management committed €0.9m to the buyout.

The transaction generated a gross IRR of 43% for investors and a multiple on cash invested of 3.3 times.

Based in Sesto S. Giovanni outside Milan, Italy, Pompe Gabbioneta is a producer of made to order centrifugal pumps for the oil and gas industry. The company serves a wide range of customers including oil majors and leading engineering contractors in high growth developing regions such as Africa, the Middle East, Eastern Europe and Asia. Pompe Gabbioneta operates two facilities and employs 240 people. The business was established in 1897.

Under the control of Aksia Group and BancBoston Capital Pompe Gabbioneta grew its market share to become the third ranked in the European, Middle East and African petrochemical pump market.

For the year to 31 December 2004, Pompe Gabbioneta reported sales of €44.8m; earnings before interest, tax and amortisation (EBITA) of €6.7m and profit before tax (PBT) of €3.1m under Italian GAAP.