The historic turning point of Riello Group control goes to giant Utc – BBC

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The historic turning point of Riello Group
control goes to the giant Utc

sold the company to the leading American Legnago heating

VERONA Italy United Technologies Holdings, a company controlled by the American giant of the same name, will acquire 70% of Gruppo Riello. After months of negotiations, yesterday was officially announced the agreement for the transfer of the shares that will be finalized in the new year, most likely by next March, once received the green light from the Antitrust Authority. After the transaction closes, the Riello family will retain the remaining shares of the company, or 30%, and the Riello Group will become part of UTC Climate, Controls & amp; Security entering a giant bill that already 48 billion dollars a year. With the acquisition and the passage of the Americans Riello, for the historic company thermomechanical Legnago, but also for much of the economy of Lower Verona closes an era. “Our – reminds Group President Ettore Riello – is an industrial route along: in 2022 we will do a hundred years of corporate life. It is not just a family bond with this company because Riello has been the leading company in the territory: not only in thermomechanical, and it should be remembered that the Riello born also marks our major competitors, but also in other areas. Riello has been an incubator of innovation in industry, for example, it comes to mind the field of machine tools; without forgetting that without the Riello, Riello there would be no. ”

A path l anointed, full of events: in 1922 was Pylades Riello founded the Officine Fratelli Riello proposing its historic burner, but it was in 2000 that the group had face major changes. Just in 2000, the fund Carlyle acquired the 50%, but four years later the current president, along with sisters, regained control of the company. Looking back on that operation, Riello said: “The sale was wrong because as other funds, with Carlyle I found myself talking about finance and industry and its contribution was not so significant, indeed. We decided to buy back and start went well: 2005 was a good year, then the costs of raw materials and the crisis put us in trouble. ” Hence the decision to look for another partner, but completely different: a real industrial partner as has Utc matters do Riello its platform for expansion in the European market. “We believe that the Riello Group, with its brands now established and its range of products, constitutes an excellent platform for the expansion of Utc in heating in Europe – said Ross Shuster, president of International Operations of UTC Climate, Controls & amp; Security -. We believe that using the know-how of engineering Riello Group, its industrial capabilities and expertise of its highly qualified employees, there is a very high potential to increase our presence in the segment globally and to increase synergies with the activities existing. “

And beyond emotion and a bit of nostalgia, even the president Riello is convinced he made the right choice:” This operation will enhance energy, professional experiences, skills that we have. I do not say that everything will be easy, but with the Americans speaking a real language, cards on the table. Going to be great and will be the competitors have to make a reflection. Maybe the banks will be a bit ‘sad, we do not knock on their doors for a few more Euros. ” Even the trade union organization are favorable to the operation: “The hope is that – they said in a note – with the input of the new entity, will build the conditions for the re-launch.”

Samuel Nottegar