Landi Group is growing

The Landi Group, headquartered in Italy’s motor valley, is a candidate for the role of global player in decarbonisation. Under the non-binding term sheet signed, Itaca Equity Holding – whose main shareholder is Tamburi Investment Partners — will acquire a minority stake, and the Landi Family will keep a controlling interest in the Group.

Landi Group and Itaca Equity Holding

According to the Italian company, The Board of Directors of Landi Renzo, chaired by Stefano Landi, met today and acknowledged the communication received by Chairman Stefano Landi on the subscription by the controlling shareholders of Landi Renzo — Girefin S.p.A and Gireimm S.r.l., which jointly hold 59.16% of Landi Renzo’s share capital — of a non-binding term sheet with Itaca Equity Holding S.p.A. laying the basis of a transaction whereby the latter will acquire a minority interest in the share capital of Landi Renzo, as long-period investor, to support Landi Renzo’s expansion in both the compression and the automotive segments. The main shareholder of Itaca Equity Holding is Tamburi Investment Partners. The transaction involves a co- investment by Land Renzo’s CEO Cristiano Musi. The Board of Directors also approved the Group’s new 2022-2025 Business Plan, which forecasts a significant growth for the Group as a strategic expert in the biomethane and hydrogen segments, with a product range spanning the entire value chain, from compression for injection into the grid or transport of biomethane and hydrogen to compression solutions throughout the pipeline and for distribution, with a full range of solutions also for sustainable gas-and hydrogen-powered mobility for the After Market, Passenger Car and Mid&Heavy Duty segments.

2021 figures, Idro Meccanica and Metatron

2021 was a year of transformation for the Group, which thanks to some M&As expanded its business scope both in the automotive and infrastructure segments, increasing its exposure to hydrogen and biomethane. In particular, through the consolidation of SAFE&CEC and acquisition of Idro Meccanica, the Group has increasingly positioned itself among the global leaders in the segment of alternative compressors for the distribution of CNG, biomethane and hydrogen, which are growing rapidly at the global level. In particular, the infrastructure segment (net of Idro Meccanica) accounted for over 35% of Landi Renzo’s revenues and over 50% of its adjusted EBITDA. Through the acquisition of Metatron, the Group also positioned itself as a leader in pressure regulators for biomethane, CNG, LNG and hydrogen for the Light Commercial Vehicle and Mid&Heavy Duty segments, with access to a highly advanced product portfolio, in addition to reach the main OEMs in the sector at the global level, from Europe to China.

2021 in a nutshell

• Consolidated revenues amounted to €242 million, sharply up compared to the same period of the previous year (€142.5 million, on a like-for-like consolidation basis revenues rose by 17.1% compared to the same period of the previous year)
• –  Adjusted EBITDA was €14.6 million, nearly twice the amount at December 31, 2020 (€8 million)
• –  EBITDA was €12.6 million (5.2% of revenues), up 89.6% compared to the previous year
• –  Net result positive for €545 thousand, compared to a loss of €7.8 million at December 31, 2020
• –  Net Financial Debt was €133,493 thousand (€72,917 thousand at December 31, 2020), of which€25,436 thousand related to the financial commitment for the acquisition of Metatron S.p.A.

Krishna Landi Renzo

The Indian joint venture Krishna Landi Renzo, consolidated using the equity method, reported very positive results both in terms of revenues (€19.6 million) and margins (EBITDA at €3.6 million, above 18%), with positive forecasts of strong improvement during 2022 and very interesting prospects for the coming years.