At what enterprise value was CASTELLO ITALIA acquired in 2021?

During the acquisition of CASTELLO ITALIA by GROUP ARAYMOND in 2021, the company was valued at an estimated revenue multiple of below 5x. The transaction's Enterprise Value is estimated to be in the range of 50M - 150M EUR. By registering for free, you get access to complete and exact transaction details including enterprise value, revenue, and EBITDA. Additionally, our database shows that the Industry & Manufacturing industry currently tracks an average EBITDA multiple of 10.8x, providing a valuable benchmark for this transaction.

What was the EV/EBITDA of CASTELLO ITALIA when it was acquired by GROUP ARAYMOND?

The estimated EV/EBITDA multiple for CASTELLO ITALIA is in the range of 10x - 18x. For comparison, the Industry & Manufacturing sector currently shows an average EBITDA multiple of 10.8x. Join our community for free to access full valuation data and industry trends.

When was CASTELLO ITALIA acquired by GROUP ARAYMOND?

CASTELLO ITALIA was acquired by GROUP ARAYMOND in 2021.

What was the revenue of CASTELLO ITALIA at the time of the deal?

The revenue of CASTELLO ITALIA at the time of the deal is estimated to be in the range of 25M - 50M EUR. Register for free to access the full transaction report and exact valuation multiples.

What was the EBITDA of CASTELLO ITALIA during the acquisition?

CASTELLO ITALIA's EBITDA is estimated to be in the range of 5M - 25M EUR. Join our community for free to access complete and exact deal data.

What is Enterprise Value (EV)?

Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization. EV includes in its calculation the market capitalization of a company but also short-term and long-term debt as well as any cash on the company's balance sheet.

What is the EV/EBITDA multiple and why is it used?

The EV/EBITDA multiple is a financial ratio that compares a company's Enterprise Value (EV) to its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). It is widely used in M&A and valuation because it allows for comparisons between companies with different capital structures and provides a clear view of operational profitability.

How is the data for the CASTELLO ITALIA acquisition sourced and is it reliable?

Mynth data is contributed by a professional community of M&A and Private Equity experts. Each transaction, including the CASTELLO ITALIA deal, is systematically cross-verified by our team using private deal documents and official sources. You can also find the official press release for this transaction here: https://www.arcadiasgr.it/upload/news/allegati/129231-3-allegato.pdf

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Home Database Industry & ManufacturingCASTELLO ITALIA

10/2021

CASTELLO ITALIA acquired by GROUP ARAYMOND

ITALY Chemicals & Materials / Material Transformation / Plastics EV 50M - 150M EUR

Context

The transaction involves the sale of Castello Italia's entire share capital to the ARaymond Group, marking the first divestment by investment fund Arcadia Small Cap II after a three-year holding period characterized by the institutionalization of the target company. Arcadia had acquired 75% of the shares in August 2018 from Chemical Project Holding, which retained 25% to support the industrial development plan. Under this governance, the company achieved significant dimensional growth, increasing its workforce by 70% and raising its revenue to over 30 million euros, accompanied by a doubling of its operational profitability. This growth was driven by a comprehensive overhaul of the Casalmorano plant's industrial scheme, the installation of a 1,500 square meter external storage facility to eliminate logistical disruptions, and the attainment of tier 1 supplier status for heavy-duty vehicle brake tubes for MAN and Scania. The ARaymond Group is acquiring the asset to implement a vertical industrial consolidation strategy, as the buyer's fastening components are directly assembled onto the target's extruded tubes to transform a simple product offering into a complex integrated system with higher added value. Operational continuity is ensured by the retention of President Pierluigi Testa at the helm, while the post-acquisition roadmap will prioritize the global commercial deployment of Castello's installed base, leveraging the buyer's international distribution networks to expand the business.

Arcadia had previously taken control of the company through an LBO in 2018.

CASTELLO ITALIA, which reported an EBITDA margin of LOGIN in 2021, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN to the average currently observed in the Industry & Manufacturing sector (10.8x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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Target

Castello Italia manufactures high-specification polyamide and polyurethane extruded plastic tubes and spiral hoses engineered for industrial automation pneumatics and automotive fluid handling networks. The business generates cash flow through the continuous processing of technical polymer resins into specialized flexible piping components, exporting eighty percent of its output primarily to Western European industrial buyers and component distributors. Revenue visibility is supported by replacement and build cycles, as these flexible tubes are subject to routine mechanical wear, high-pressure friction, and chemical degradation within industrial factory floors and vehicle engine bays, requiring regular maintenance call-offs from purchasing managers. The company's operational throughput depends on maximizing the capacity utilization of its specialized extrusion lines and managing compounding raw material inputs to ensure precise dimensional tolerances. Procurement decisions by corporate buyers are heavily non-discretionary, governed by rigorous Tier-one and automotive OEM technical qualification protocols that mandate multi-year supplier testing timelines before factory parts receive delivery clearance.

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Other operations with CASTELLO ITALIA

List of similar M&A transactions (Date, Acquirer, Target, Country, Sector, Deal Context)
Date	Acquirer	Target	Country	Sector	Deal Context
09/2018	ARCADIA	CASTELLO ITALIA	ITALY	Chemicals & Materials	The transaction involves the sale of 75% of Castello Italia's capital by Chemical Project Holding to Arcadia and the management team, marking the end of an eighteen-year ownership cycle during which the seller structured the manufacturer's entry into the automotive market, now accounting for half of its revenue. The seller retains a 25% minority stake alongside Arcadia and the management team, who reinvest 3%, thereby securing an alignment of industrial interests and managerial continuity under the leadership of Pierluigi Testa, who has been at the helm since 2014. The decision to use equity financing without debt leverage aims to preserve the company's financial flexibility in the face of necessary industrial capacity investments to absorb the surge in orders. The post-acquisition roadmap includes developing the business by bypassing distribution intermediaries in favor of direct supply contracts with top-tier automotive manufacturers, a project overseen by new president Fausto Lanfranco, who brings his expertise in the referencing processes of the Fiat Chrysler Automobiles group, having entered 5 new countries in recent years, with the goal of further expanding the company's international presence.

REFERENCES

Valuation range: EV 50M - 150M EUR

Revenue range: 25M - 50M EUR

EBITDA range: 5M - 25M EUR

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of CASTELLO ITALIA by GROUP ARAYMOND are reserved for mynth community members. Register for free to unlock full data.

Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).

Target: castello italia

Acquirer: group araymond