Landi Renzo is committed to acquire Safe

The transaction, aimed at allowing the distressed company to continue operations and to be re-launched, even preventing some job cuts, is part of the strategy of Landi Renzo which considers the possibility of expanding its own product portfolio with the the know-how in the production of “CNG stations” as a competitive factor. Landi Renzo believes that, with a view to industrial integration, refueling stations could have a parallel development of the use of methane as a fuel or even to boost it.

“The transaction concerns the Group strategy- said Landi Renzo’s CEO Claudio Carnevale- that points to expand its product portfolio. This acquisition, moreover, confirms the world-wide leadership of Landi Renzo Group in developing and marketing innovative technological solutions in the field of low environment impact transports. Finally – said Mr. Carnevale- this operations gives us the opportunity to enter in important segments of the high pressure gas processing field, such as, among the others, Oil and Gas and Biogas.”

The business branch involved in the transaction comprises several assets including tangible and intangible assets, as well as a specific number of workers necessary for business relaunching.

Rental of the business branch, in preparation for the acquisition, is subject to some suspension clauses, the most significant of which is the authorisation from the Court of Bologna to enter into the temporary rental and acquisition contract.

The final acquisition of the business branch is subject to approval of the composition plan which Agave will propose to its creditors.

The financial outlay for the transaction can be estimated at around 10 million euro (around 2 million euro for the acquisition of the business branch and around 8 million euro for the acquisition of Agave inventories). Such value will be rectified, upon conclusion of the transaction, by assessing the exact amount of all the items involved in the transfer, also including some liabilities of about 500 thousand euro.

During 2011, through the business branch in question, Agave achieved a turnover of around 27 million euro.
It is expected that the business branch becomes effective from the beginning of next July: it can be estimated that such a business could contribute around 10 million additional euros to revenues of the Landi Renzo Group for the current financial year.

For the purposes of this transaction Landi Renzo is supported by Mediobanca S.p.A. in the capacity of financial advisor and by Studio Legale Bassi & Terzi, Studio Oliva and by Analisi S.p.A. respectively as legal, tax and accounting consultants.

Source: Landi Renzo.