SIT Group, a leading company in the design, production and marketing of components for domestic gas appliances with headquarters in Padua, is ready to debut on the Stock Exchange, in the AIM segment, by July through a SPAC promoted by Attilio Arietti and Giovanni Cavallini .
But who is SIT and what exactly does it do? The Group, made up of 8 production companies located in Italy, Mexico, Holland, Romania and China, markets its products in 69 countries with a largely owned sales network and employs around 2.000 people.
Turnover in 2016 exceeded 288 million euros (+8,9% compared to 2015), of which approximately 70% sold and 43% produced outside Italy. Adjusted EBITDA for 2016 was equal to 44,6 million euros (+26,4% compared to 2015), corresponding to 15,5% of revenues. 2016 EBIT reached 23,5 million euros (+94,9% vs. 2015). Since 2012, the Group has recorded an average annual growth in turnover of 6,6%.
The Group operates through the two divisions Heating (components and systems for the control, regulation and safety of gas appliances for domestic use) and Smart Gas Metering (new smart meters that communicate data in real time, able to measure the gas consumption with extreme precision). SIT counts among its customers important national and international players, including Bosch, Vaillant, Ariston, Baxi, Electrolux, De Longhi Italgas and 2I Rete Gas.
Founded in 1953 by Pierluigi and Giancarlo de Stefani, from the 60s to the 90s the company experienced significant development on its reference markets, including international ones (the Shanghai branch was opened in 1997). Since the end of the 90s, acquisitions have been made in Holland and Italy and investments in production capacity have been made in our country, Holland, Romania and China. In 2009 the subsidiary Metersit was established (initially in the form of a JV), for the development of Smart Gas Metering.
Federico de' Stefani, Chairman of the company and son of one of the founders, is the controlling shareholder and owner of 99,62% of SIT SpA through SIT Technologies SpA De Stefani took over the shares from the other family members through a family buy operation out carried out in 2014. In 2016 it carried out a capital increase of 14 million euro which will be followed in 2017, within the framework of the transaction with Indstars 2, by the conversion to capital of 8 million euro of shareholder financing.
SIT Group is today one of the main European and world operators in its sector. SIT has important shares in the markets in which it operates and is the world leader in over 1/3 of its turnover. The extensive commercial network, the cutting-edge technology (79 registered patents) and constant innovation also in partnership with the main customers, the important investments in R&D (equal on average to around 4% of the annual turnover) up to the recent entry into the sector of Smart Gas Meters with a particularly innovative technology have allowed SIT to reach this position.
The stock exchange listing project of SIT Group represents a cornerstone of the Group's growth and evolution path. In fact, the company intends to complete its transformation from a mechanical company into a fully electronic company, ready to face and overcome the challenges of industry 4.0 on global markets.
Market leadership, stable profitability, the ability to innovate and the high potential for internal and external growth are among the main strengths with which SIT presents itself to the financial market.
The business combination with Industrial Stars of Italy 2 and the listing on the Stock Exchange
On 24 February 2017 SIT SpA announced an integration agreement with Industrial Stars of Italy 2, the Special Purpose Acquisition Company (SPAC) listed on the Aim and promoted by Attilio Arietti, founder and Chairman of Oaklins Arietti, and Giovanni Cavallini, former Chairman by Interpump. The agreement provides for the merger of the two companies and the simultaneous listing of SIT Group on the AIM segment of Borsa Italiana by the end of July 2017. The merger was approved by the shareholders' meetings of the two companies held on 5 May. A subsequent transition to the MTA is also envisaged, tentatively assumed in the first half of 2018.
Industrial Stars of Italy 2, after Industrial Stars of Italy which successfully completed the merger with LU-VE Group in 2015, is the second (SPAC) promoted by Cavallini and Arietti. In May 2016, as part of the offer aimed at its IPO, Indstars 2 raised €50,5 million from Italian and foreign institutional investors and was admitted to trading on the AIM Italia.
The injection of new capital by the SPAC and the controlling shareholder, the improvement of the financial structure and the important cash generation will open up further growth opportunities for SIT Group through internal lines (investments in innovation and production) and external lines ( acquisitions).
The Business Combination with Indstars 2 will also lead to a significant reduction in financial charges following the simultaneous refinancing of the debt, with savings estimated at around 15 million euros (estimate calculated on 2016 data).
