Carlyle Group LP agreed to purchase all of the shares of Forgital Italy SpA in a transaction that values the Italian forging company at approximately €1 billion.
The global investment firm said it will fund the transaction out of its European-focused upper-midmarket buyout fund Carlyle Europe Partners V and its U.S.-focused buyout fund Carlyle Partners VII LP.
Vicenza, Italy-based Forgital is controlled by members of the founding Spezzapria family. Fondo Italiano di Investimento, a fund managed by Neuberger Berman AIFM Ltd., also owns a minority stake in the company.
The families of Nadir and Roberto Spezzapria have an option to reinvest in Forgital at the deal's closing. The deal is scheduled to close in the second half, pending regulatory approvals and normal closing conditions.
Forgital manufactures machine-finished forged and laminated rolled rings for the aerospace, oil and gas, construction, mining and power generation industries. It has nine facilities across Italy, France and the U.S.
Carlyle Europe Partners Managing Director Filippo Penatti said the firm will help Forgital create a global growth platform, mainly in the aerospace market.