CIGP Group, ICFG member based in the Hong-Kong has recently advised the shareholders of Chemical Project Holding on the sale of a majority stake in its plastic extrusion business, Castello, to the Italian Private Equity firm Arcadia.
CIGP is pleased to have exclusively advised Chemical Project Holding s.r.l (“CPH”) on the sale of a 75% stake in its specialist plastic extrusion business, Castello Italia S.p.A. (“Castello”), to Arcadia SGR S.p.A (“Arcadia”).
Castello, founded in 1965, is a leading manufacturer of speciality plastic pipes and tubes for the automotive and industrial sectors, based in Casalmorano near Milan, Italy. The company has a diversified clientele of leading global Tier-1 suppliers to automotive OEMs, also directly supplying commercial vehicle OEMs, as well as industrial equipment manufacturers.
CIGP successfully advised CPH, Castello’s shareholder, on assessing and implementing the group reorganization, resulting in Castello’s majority stake sale. The structure of the deal allowed CPH to realise a significant stake in the company, whilst retaining upside exposure.
Castello has been growing at over 20% through its industrial plan. Its management foresees the consolidation of the company’s presence in the industrial sector and a further growth in the automotive market, also through direct commercial relations with the main OEMs. The key factors of the company’s success are the continuous investments in modern and sophisticated production machineries, the UNI EN ISO 9001 and ISO / TS 16949 certifications and a consolidated know-how of the extrusion processes.
Castello attracted interest from both financial and strategic investors, throughout the transaction process, as CIGP was able to leverage its connections and deep understanding of the automotive and industrial sectors globally.
“The sale of our company required an experienced advisory team with strong industry connections and professionalism,” said the former CEO and Chairman of Castello and CPH’s controlling shareholder. “CIGP provided tremendous support, effectively implementing a successful strategy and adding value all along the transaction process”.
CPH’s former CEO and Chairman shall maintain his role on Castello’s Board of Directors and he will continue to support the company with his entrepreneurial experience and his deep knowledge of the plastic chemical sector.
Hugues de Saint Seine, a Partner at CIGP, mentioned “We are pleased to have advised CPH on achieving its majority stake sale. Our global and entrepreneurial mindset enabled us to identify and reach the best possible partner for Castello. This transaction demonstrates our ability to provide sound advisory work to speciality industries and their shareholders”.