Russell Kennedy has advised the major shareholder of hydraulics manufacturer RYCO Hydraulics Pty Ltd (RYCO) on the sale of its majority stake to Manuli Rubber Industries SpA (Manuli).
This news has been covered by the Australiasian Lawyer and Lawyers Weekly.
Manuli, who are headquartered in Milan, has acquired a controlling stake in RYCO from major shareholder Perrot Mill and RYCO CEO, Leigh Morrison. Mr Morrison will retain a minority shareholding in RYCO and continue in his role as CEO.
Manuli will now merge its Hydraulics and Fluiconnecto divisions with RYCO to create a market leading hydraulics company with an enhanced product range and global supply and service offering. The combined business, with total sales approaching $AUD820 million and more than 4,500 employees, will be a leader in the global hydraulic hose and fittings industry, servicing a broad range of market sectors.
Russell Kennedy acted for Perrot Mill with respect to the divestment of its 50% shareholding in RYCO. The Russell Kennedy team was led by principal Andrew Parlour and special counsel Rory Maguire, from the firm’s Corporate Advisory/ M&A team, with assistance from lawyer Angela Liu.
Andrew Parlour congratulated RYCO on the merger, saying “We are thrilled to have assisted our client on the successful sale of its majority stake in RYCO to Manuli. This transaction combines two market leading hydraulic hose and fittings business into a global leader, and we are excited to see the growth of the new business partnership.”
RYCO Hydraulics Chief Executive Officer, Leigh Morrison, said “Both Manuli and RYCO are family owned and run private companies with similar cultures and a shared commitment to remaining agile, responsive and customer-focused. This merger creates benefits greater than either company could achieve alone.”
Manuli Chief Executive Officer, Dardanio Manuli, said “This transaction captures the full benefit of combining complementary product ranges, engineering and innovation capabilities, a strategically located manufacturing footprint and a truly global market reach. We are excited about the potential benefits and growth opportunities that will result from the best of what both Manuli and RYCO bring to the market.”
Perrot Mill was also advised by Deloitte, with Manuli advised by HSF and KPMG, and Mr Morrison advised by Arnold Bloch Leibler.
A copy of RYCO’s announcement can be found here.
Further assistance
For assistance regarding mergers and acquisitions, please contact Andrew Parlour on (03) 9609 6818 or Rory Maguire on (03) 8602 7246.
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