(Alliance News) - Esautomotion Spa announced on Saturday that it has signed an investment agreement and shareholders' agreement to acquire the business of Sangalli Servomotori Srl, a company active in the electric motors market, through the purchase of the entire share capital of a newly established company.

To this new company, the business unit consisting of all the activities organized for the operation of Sangalli's electric motor production and development business will be contributed.

The agreement has been signed with Sangalli Servomotori Srl, Elettromeccanica Vittorio Sangalli Srl and Massimo Sangalli: specifically, the investment agreement provides for a total consideration of EUR10.0 million for the purchase of the entire share capital of the new company, from which any positive net financial position of NewCo as of July 7, 2023 will have to be subtracted.

The amount will be paid partly in cash and partly with 170,000 shares of Esautomotion for a total consideration of about EUR1.0 million.

Sangalli is a historical company in the industrial fabric of Monza, Italy, founded in 1957 and mainly active in the production, purchase, sale, rental, installation, management, import and export of electric motors of all kinds and types as well as spare parts for the motors themselves and complementary products.

As of Dec. 31, 2022, Sangalli consists of two production units with a total of about 3,000 square meters and 49 employees and reported revenues of about EUR7.3 million, Ebitda of about EUR1.6 million, net financial debt of about EUR1.3 million.

Esautomotion is up 4.9 percent to EUR4.47 per share.

By Chiara Bruschi, Alliance News reporter

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