One Equity Partners Invests in Comau to Foster Greater Growth in the Italian Industrial Automation Leader

Rhea-AI Summary

Stellantis N.V. and One Equity Partners (OEP) have announced a binding agreement for OEP to make a majority investment in Comau, a global industrial automation and robotics company. This spinoff is part of the strategic plan set during the Stellantis merger in January 2021. Stellantis will remain an active minority shareholder.

Key points:

• Comau will gain access to additional funds to enhance its Italian roots and expand in diversified sectors
• The executive team, including Executive Chairman and CEO, will remain intact
• The transaction is expected to close by the end of 2024, subject to regulatory approvals
• Financial terms were not disclosed

This move aims to help Comau achieve autonomy and strengthen its success while allowing Stellantis to focus on core business activities in Europe.

Positive

• OEP's majority investment may provide Comau with additional funds for growth and expansion
• Comau will maintain its executive team, ensuring business continuity
• The spinoff aligns with Comau's strategic plan to expand beyond the automotive sector
• Stellantis retains a minority stake, potentially benefiting from Comau's future success

Negative

• Stellantis is divesting majority control of a potentially valuable automation and robotics subsidiary
• The financial terms of the transaction were not disclosed, limiting investor insight

Insights

Financial Analyst

The acquisition of a majority stake in Comau by One Equity Partners (OEP) marks a significant shift in the industrial automation landscape. This move aligns with Stellantis' strategic plan outlined during its formation in 2021, allowing the automaker to focus on its core business while potentially unlocking value for shareholders.

From a financial perspective, this transaction could have several implications:

• Improved capital allocation: Stellantis can redirect resources to its primary automotive operations, potentially enhancing overall efficiency and profitability.
• Potential for value creation: As a standalone entity with OEP's backing, Comau may have greater flexibility to pursue growth opportunities, which could translate into increased valuation over time.
• Diversification of revenue streams: Comau's expansion beyond the automotive sector could lead to more stable and diverse income sources, reducing cyclical risks associated with the auto industry.

While financial terms weren't disclosed, the deal's structure - with Stellantis retaining a minority stake - suggests a balanced approach that allows the automaker to benefit from Comau's future growth while reducing its direct exposure to the industrial automation sector.

Investors should monitor how this transaction impacts Stellantis' balance sheet and future earnings reports. The retention of key executives at Comau indicates a commitment to continuity, which could smooth the transition and maintain operational stability.

Tech Expert

The acquisition of Comau by OEP represents a significant development in the industrial automation and robotics sector. As a tech expert, I see several key implications:

• Innovation potential: With OEP's investment, Comau may have access to additional resources to accelerate R&D efforts, potentially leading to breakthroughs in automation technology.
• Market expansion: The move to diversify beyond automotive could see Comau's advanced robotics solutions penetrating new industries, driving growth and technological adoption across various sectors.
• Competitive landscape: As an independent entity, Comau may be better positioned to compete with other major players in the industrial automation space, potentially leading to increased innovation and market dynamism.

The retention of Comau's executive team, including the CEO and Executive Chairman, suggests a commitment to maintaining the company's technological expertise and vision. This continuity could be important in preserving Comau's competitive edge and ensuring smooth execution of ongoing projects and strategies.

Looking ahead, it will be interesting to see how Comau leverages its "Italian roots" in conjunction with global expansion plans. The company's ability to adapt its technologies for diverse applications outside automotive will be a key factor in its future success and could potentially reshape the industrial automation market.

• One Equity Partners (OEP) will become majority shareholder of Comau; Stellantis will remain an active minority shareholder
• The spinoff of Comau is part of the strategic agreement signed when Stellantis N.V. was formed in January 2021
• Under the new ownership, Comau will have access to additional funds as appropriate to enhance and expand its Italian roots, and to grow its competencies in diversified sectors
• Executive team, including Executive Chairman and CEO, will remain intact after closing

AMSTERDAM--(BUSINESS WIRE)-- Stellantis N.V., one of the world’s largest automakers and mobility providers, and One Equity Partners (“OEP”), a middle market private equity firm, today announced that OEP has signed a binding agreement to make a majority investment in Comau S.p.A. (“Comau”), a global technology company specializing in industrial automation and advanced robotics. The spinoff of Comau is part of the strategic agreement set during the merger between former FCA and Groupe PSA in January 2021 that formed Stellantis N.V. Financial terms of the private transaction were not disclosed.

“Comau has positioned itself as a recognized player in the field of automation solutions over the past 50 years,” said Stellantis CEO Carlos Tavares. “This planned transaction is designed to help Comau achieve autonomy and further strengthen its success in support of all its stakeholders, specifically for their employees and customers. It also gives Stellantis the ability to focus on core business activities in Europe.”

"Comau is a leading-edge industrial automation company with first-rate robotics technology that has tremendous growth potential,” said Ante Kusurin, Partner, One Equity Partners. “We have deep expertise in executing complex corporate carve-out transactions, and we believe we have the resources to help position Comau as a successful standalone business.”

“In its over 50 years of history, Comau has consistently demonstrated the ability to transform its business, technology and approach to innovation,” said Comau CEO Pietro Gorlier. “This operation is consistent with Comau’s strategic plan, which aims to expand its business beyond the automotive sector, targeting the global demand growth for industrial automation. This will also consolidate the company’s position as a strong international leader in its sector, maintaining solid Italian roots.”

Executive Chairman Alessandro Nasi and CEO Pietro Gorlier will retain their responsibilities, as will the Executive Team.

Comau has a local presence in all regions and a global network that is strengthened by its business and leadership continuity. As an autonomous company, Comau can independently identify and pursue new opportunities and investments.

The transaction is expected to close by the end of 2024 and is subject to regulatory approvals and other customary closing conditions.

About Comau

Comau, a Stellantis company, is a worldwide leader in delivering sustainable advanced automation solutions. With 50 years of experience and a global presence, Comau is helping companies of all sizes in almost any industry leverage the benefits of automation. Backed by a continuous commitment to designing and developing innovative and easy to use technologies, its portfolio includes products and systems for vehicle manufacturing, with a strong presence in e-Mobility, as well as advanced robotics and digital solutions to address rapidly growing markets in industrial sectors. The company’s offering also extends to project management and consultancy. Through the training activities organized by its Academy, Comau is committed to advancing the technical and managerial knowledge necessary to face the challenges related to automation and leverage the opportunities of a constantly changing marketplace. Headquartered in Turin, Italy, Comau has an international network of 7 innovation centers and 12 manufacturing plants that span 12 countries and employ 3,700 people. Together with its wide network of distributors and partners, the company is able to respond quickly to the needs of its customers, no matter where they are located throughout the world. www.comau.com

About Stellantis

Stellantis N.V. (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP) is one of the world’s leading automakers aiming to provide clean, safe and affordable freedom of mobility to all. It’s best known for its unique portfolio of iconic and innovative brands including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, FIAT, Jeep_®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys. Stellantis is executing its Dare Forward 2030, a bold strategic plan that paves the way to achieve the ambitious target of becoming a carbon net zero mobility tech company by 2038, with single-digit percentage compensation of the remaining emissions, while creating added value for all stakeholders. For more information, visit www.stellantis.com.

About One Equity Partners

One Equity Partners (“OEP”) is a middle market private equity firm focused on the industrial, healthcare, and technology sectors in North America and Europe. The firm seeks to build market-leading companies by identifying and executing transformative business combinations. OEP is a trusted partner with a differentiated investment process, a broad and senior team, and an established track record generating long-term value for its partners. Since 2001, the firm has completed more than 400 transactions worldwide. OEP, founded in 2001, spun out of JP Morgan in 2015. The firm has offices in New York, Chicago, Frankfurt and Amsterdam. For more information, please visit www.oneequity.com.

Stellantis Forward Looking Statements

This communication contains forward-looking statements. In particular, statements regarding future events and anticipated results of operations, business strategies, the anticipated benefits of the proposed transaction, future financial and operating results, the anticipated closing date for the proposed transaction and other anticipated aspects of our operations or operating results are forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “remain”, “on track”, “design”, “target”, “objective”, “goal”, “forecast”, “projection”, “outlook”, “prospects”, “plan”, or similar terms. Forward-looking statements are not guarantees of future performance. Rather, they are based on Stellantis’ current state of knowledge, future expectations and projections about future events and are by their nature, subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future and, as such, undue reliance should not be placed on them.

Actual results may differ materially from those expressed in forward-looking statements as a result of a variety of factors, including: the ability of Stellantis to launch new products successfully and to maintain vehicle shipment volumes; changes in the global financial markets, general economic environment and changes in demand for automotive products, which is subject to cyclicality; Stellantis’ ability to successfully manage the industry-wide transition from internal combustion engines to full electrification; Stellantis’ ability to offer innovative, attractive products and to develop, manufacture and sell vehicles with advanced features including enhanced electrification, connectivity and autonomous-driving characteristics; Stellantis’ ability to produce or procure electric batteries with competitive performance, cost and at required volumes; Stellantis’ ability to successfully launch new businesses and integrate acquisitions; a significant malfunction, disruption or security breach compromising information technology systems or the electronic control systems contained in Stellantis’ vehicles; exchange rate fluctuations, interest rate changes, credit risk and other market risks; increases in costs, disruptions of supply or shortages of raw materials, parts, components and systems used in Stellantis’ vehicles; changes in local economic and political conditions; changes in trade policy, the imposition of global and regional tariffs or tariffs targeted to the automotive industry, the enactment of tax reforms or other changes in tax laws and regulations; the level of governmental economic incentives available to support the adoption of battery electric vehicles; the impact of increasingly stringent regulations regarding fuel efficiency requirements and reduced greenhouse gas and tailpipe emissions; various types of claims, lawsuits, governmental investigations and other contingencies, including product liability and warranty claims and environmental claims, investigations and lawsuits; material operating expenditures in relation to compliance with environmental, health and safety regulations; the level of competition in the automotive industry, which may increase due to consolidation and new entrants; Stellantis’ ability to attract and retain experienced management and employees; exposure to shortfalls in the funding of Stellantis’ defined benefit pension plans; Stellantis’ ability to provide or arrange for access to adequate financing for dealers and retail customers and associated risks related to the operations of financial services companies; Stellantis’ ability to access funding to execute its business plan; Stellantis’ ability to realize anticipated benefits from joint venture arrangements; disruptions arising from political, social and economic instability; risks associated with Stellantis’ relationships with employees, dealers and suppliers; Stellantis’ ability to maintain effective internal controls over financial reporting; developments in labor and industrial relations and developments in applicable labor laws; earthquakes or other disasters; risks and other items described in Stellantis’ Annual Report on Form 20-F for the year ended December 31, 2023 and Current Reports on Form 6-K and amendments thereto filed with the SEC; and other risks and uncertainties.

Any forward-looking statements contained in this communication speak only as of the date of this document and Stellantis disclaims any obligation to update or revise publicly forward-looking statements. Further information concerning Stellantis and its businesses, including factors that could materially affect Stellantis’ financial results, is included in Stellantis’ reports and filings with the U.S. Securities and Exchange Commission and AFM.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240724841588/en/

Comau

Giuseppe Costabile

Corporate Communication

giuseppe.costabile@comau.com

+39 338 7130885

Stellantis

Fernão Silveira

Global Communications

fernao.silveira@stellantis.com

+31 6 43 25 43 41

Claudio D’Amico

Italy Communications

claudio.damico@stellantis.com

+39 334 7107828

One Equity Partners

Thomas Faust

Stanton

646-502-3513

TFaust@StantonPRM.com

Source: One Equity Partners

FAQ

What is the purpose of One Equity Partners' investment in Comau?

One Equity Partners' investment in Comau aims to help the company achieve autonomy, strengthen its success, and provide access to additional funds for enhancing its Italian roots and expanding into diversified sectors beyond automotive.

How will the Comau spinoff affect Stellantis (STLA)?

The Comau spinoff will allow Stellantis (STLA) to focus on its core business activities in Europe while retaining an active minority stake in Comau. This aligns with Stellantis' strategic plan set during its formation in January 2021.

When is the Comau transaction expected to close?

The transaction between Stellantis and One Equity Partners for Comau is expected to close by the end of 2024, subject to regulatory approvals and other customary closing conditions.

Will there be changes to Comau's management after the OEP investment?

No, Comau's executive team, including Executive Chairman Alessandro Nasi and CEO Pietro Gorlier, will retain their responsibilities after the One Equity Partners investment is completed.