Translink Strempel & Co Exclusive Financial Advisor to Geico Spa in its Global Alliance with the Japanese Industrial Group Taikisha Ltd

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The Japanese group Taikisha, listed on Tokyo Stock Exchange and second-largest player worldwide in paint plants for the automotive sector, acquires 51% of Geico as part of the global alliance between the two companies

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This transaction is a great example of how small and medium-sized Italian companies can achieve scale, while retaining a certain degree of independence in enhancing their global competitive position by considering M&A and strategic alliance opportunities.

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Strempel & Company, the Milan based corporate finance firm, is glad to announce the formation of a global alliance between Geico Spa, an Italian company specialized in automated paint plants for the automotive industry, and Taikisha Ltd of Japan. The alliance reinforces both companies’ marketing, geographical coverage and technological positions. The commitment behind the establishment of the alliance is evidenced by the acquisition of a 51% equity stake in Geico by Taikisha.

Taikisha, a Japanese company with sales in excess of one billion euros and listed on the Tokyo Stock Exchange, is the second-largest global player in automated paint plants for the automotive sector, in addition to be a producer of air conditioning systems for both commercial and industrial applications.

Geico is an industrial group with over 100 years of tradition in the manufacturing of “turn-key” paint systems and plants for the vehicle industry. In addition to its Italian headquarter, the company has subsidiaries in China, Brazil and India. Management expects the company to have revenues around 65 million euros in 2011 with an Ebitda of about 5 million.

Translink Strempel & Company originated the transaction and acted as exclusive financial advisor to Geico, with a team composed of Alberto Parisi Presicce (Partner), David Strempel (Managing Partner) and Pier Paolo D’Angelo (Associate).

“I am proud that our company contributed to a transaction – declared Alberto Parisi Presicce – that creates huge value for both parties involved. Taikisha and Geico have perfectly complementary geographical coverage and client relationships. In addition, Geico brings to the table innovative technologies, which can now be offered to Japanese car maker clients of Taikisha. Finally, the professionalism of Geico’s management has been recognized to the point that Ali Reza Arabnia, Geico’s President and CEO, will become a member of the Global Executive Committee for Taikisha’s Paint division in addition to maintaining his current role in Geico”.

“Being part of an international M&A network such as Translink – added Parisi Presicce – has given us, since the beginning, a privileged access to Taikisha at Board level. The fundamentals of the suggested transaction were then so strong that this operation resisted to the tsunami catastrophe, which hit Japan during discussions”.

“The Geico transaction – declared David Strempel – is a great example of how small and medium-sized Italian companies can achieve scale, while retaining a certain degree of independence in enhancing their global competitive position by considering M&A and strategic alliance opportunities. It is also an excellent example of how the advisor can play a crucial role in helping companies bridge competitive and cultural barriers, particularly relevant in this case, considering the fact that this was the first international operation of this kind for Taikisha”.

For further information :

Arianna Ronchi
Translink Corporate Finance
Strempel & Company Srl
Tel: +39 02 8699 7475
Email: press(at)strempel(dot)it
Web: strempel.it /translink-int.com

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Arianna Ronchi
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