Well diversified across different industrial sectors, with no critical exposure anywhere, generating half its revenue in Europe and over a quarter in North America, over the past decade, as it accelerated its acquisition-led growth strategy, Interpump has experienced a bout of growth on steroids.
The takeover of its compatriot Walvoil, a specialist in hydraulic valves, propelled it into a new dimension at a time when its profits had previously tended to stagnate. Then, between 2015 and 2025, no less than 21 acquisitions enabled the group to double sales and triple its cash profit, or free cash flow.
Fully self-financed - without any capital increases - this aggressive acquisition strategy has not weakened Interpump's balance sheet either, which remains remarkably robust. However, with hindsight, overall value creation appears modest - positive and above the cost of capital, admittedly, but hardly any more.
The group led by the excellent Fulvio Montipò, which typically pays between 7x and 8x EBITDA and 1.5x revenue for its acquisitions, is itself valued at around 9-times its expected operating profit before amortisation this year, and twice its sales.
These multiples are a notch below their historical average, with a valuation floor of 8x EBITDA clearly identified - and hit twice over the past 5 years, first at the start of the pandemic and again in early 2025, when the issue of tariffs gripped investors with fear.
