Brepafin, the holding company behind Italian automotive supplier Sila Group, has outlined a two-phase plan to take over automotive component supplier Vimercati Group’s operations.
The process will begin with a lease arrangement, to be followed by a full merger, according to the Italian newspaper Il Sole 24 Ore.
The merged entity is expected to generate revenues exceeding €220m ($253.5m), employing roughly 400 people in Italy and more than 2,100 worldwide.
Vimercati, established in 1947 and under the ownership of India’s Viney Corporation since 2015, focuses on designing and producing switches and switch assemblies mainly for the automotive industry.
The company has a workforce of over 800 across Italy and Romania, with 140 employees based at its long-standing Lombardy headquarters on Via Monti in Pero.
It also runs an industrial facility in Monterrey, Mexico.
Once the transaction is complete, Vimercati will operate under a new name, NextHMI.
“With this initiative, we want to highlight how the path towards consolidation among Italian automotive components manufacturers is not only possible but also represents an opportunity to strengthen competitiveness in the markets, at a very difficult time,” Edoardo Pavesio, chairman of Sila Group was quoted as saying.
Brepafin unites shareholders from the Brero and Pavesio families, who hold ownership of Sila Group.
The group controls Sila Group, which was founded in Orbassano in 1943 and produces gearshift control systems and flexible cables for the automotive sector, with a presence spanning Italy, Poland, Brazil, India and China.
The financial details of the deal remain undisclosed, with the transaction anticipated to close in the early months of next year.
Brepafin chairman Edoardo Pavesio added: “The histories of these two companies have run parallel to date, and both epitomise the tenacity and drive to grow and develop Italian products and technologies, which we then successfully export all over the world.”
“Sila Group owner Brepafin plans two-stage Vimercati Group acquisition” was originally created and published by Just Auto, a GlobalData owned brand.