Castello Italia acquired by Group Araymond
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.
It is worth noting that the fund Arcadia took control of Castello Italia through an LBO in 2018.
Castello Italia, which reported an EBITDA margin of [members only] in 2021, is valued in this transaction at an EV/EBITDA multiple of 10x–18x, standing directly in line with the average observed in the Industry & Manufacturing sector (11.4x in 2021).
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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.
Ent. Value
€50–150M
Equity Value
[members only]
Multiples
EV / Revenue
1x–3x
EV / EBITDA
10x–18x
EV / EBIT
[members only]
Historical Financials (EUR)
Other operations with Castello Italia
| Date | Acquirer | Target | Country | Sector |
|---|---|---|---|---|
| 09/2018 | ARCADIA | CASTELLO ITALIA | ITALY | Plastics |
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REFERENCES
Valuation range: EV €50–150M
Revenue range: €25–50M
EBITDA range: €5–25M
EV/Revenue range: 1x - 3x
EV/EBITDA range: 10x - 18x
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: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.
Target: castello italia
Acquirer: group araymond
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