ADVERTISEMENT

Investing

Stonepeak Reaches Deal for Carlyle’s €1.5 Billion Forgital

(Bloomberg) -- Stonepeak has reached a deal to acquire Forgital Group, an Italian manufacturer of forged components mainly for the aerospace sector, according to people familiar with the matter.

Carlyle Group, which acquired Forgital in 2019, has signed an agreement and could announce it in the coming days, the people said, asking not to be identified discussing private talks. Stonepeak beat out other rival buyout firms including Cinven for the asset, which could be valued at more than €1.5 billion ($1.6 billion) in a deal, according to the people.

While talks are in its final stage, they could still be delayed or fall apart, the people said. Carlyle and Stonepeak couldn’t immediately be reached for comment. 

Founded in 1873 in northeast Italy, Forgital makes seamless rolled rings in rectangular or profiled sections, as well as assembled fan modules for the aerospace, power generation and defence industries, its website shows. The company has production sites in Italy, France and the US.

Carlyle bought the entire shareholding of Forgital at a valuation of about €1 billion in 2019. The Italian firm was previously majority-owned by members of founding Spezzapria family, while Fondo Italiano d’Investimento, managed by Neuberger Berman, had a minority stake.

With fundraising in Europe slower than hoped for, Carlyle has overhauled its local leadership with technology sector being favored over the consumer industry. Massimiliano Caraffa, who headed consumer, media and retail, is on the way out. De Benedetti, the architect of many luxury deals at Carlyle, has stepped down from a senior management role and now chairs the Italy business.

Stonepeak has about $70 billion in assets under management across so-called real assets, which includes infrastructure and real estate. The firm is led by Chief Executive Officer Michael Dorrell. 

(Updates headline, story to show deal has been signed.)

©2024 Bloomberg L.P.