Deal: Russell Kennedy has advised Perrot Mill Pty Ltd (Perrot Mill) on the sale of its majority stake in Australasian Steel Products Proprietary Limited (ASP), the holding company of RYCO Hydraulics Pty Ltd (RYCO), to Manuli Rubber Industries SpA (Manuli).

Manuli, which is headquartered in Milan, acquired a controlling stake in RYCO and will now merge its Hydraulics and Fluiconnecto divisions with RYCO to create a hydraulics company with an enhanced product range and global supply and service offering.

The transaction was completed on Friday, 31 January 2020.

Value: Undisclosed.

Area: M&A.

Key players: 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.

Deal significance: The combined business, with total sales approaching $AU820 million, will create a leader in the global hydraulic hose and fittings industry, servicing a broad range of market sectors.

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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.”

Manuli, founded in 1935, and RYCO founded in 1946, together have over 4,500 employees.

RYCO Hydraulics chief executive officer Leigh Morrison commented: “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.”

Russell Kennedy acted for Perrot Mill with respect to the divestment of its 50 per cent shareholding in ASP, which in turn owns 100 per cent of RYCO.

The firm advised Perrot Mill on all aspects of the transaction, including the sale process and contract negotiations, W&I insurance and shareholder-related matters.

Andrew Parlour congratulated RYCO Hydraulics on its majority shareholder sale to Manuli, 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.”