Creating a global growth platform Forgital

creaTing a global growTh plaTform

Under new owners and with a new CEO, Italy’s Forgital is opening a new chapter in its history of delivering mission critical components to its customers.

In May 2019 Forgital, the Italian manufacturer of large forged and machine components for use in the aerospace and industrial sectors, announced that global investment firm The Carlyle Group had reached an agreement to acquire the entire shareholding in the company.

Established in 1873 with headquarters in Vicenza, Italy, Forgital is a specialist manufacturer of machine-finished forged and laminated rolled rings, made from several different materials, including steel, aluminium, titanium and nickel-based alloys. They are used in several applications across many industries, including aerospace, oil & gas, construction, mining and power generation.

Thanks to its reputation for advanced technology, high-quality products and world-class customer service, Forgital has established and grown strong relationships with key global aeroengine manufacturers. Forgital employs over 1,100 people across nine facilities in Italy, France and United States and through its dedicated global salesforce.

Nadir, Roberto & Giorgio Spezzapria, who are fifth generation members of the company’s founding family, commented: “We are all excited to have Carlyle investing in Forgital to start a new phase of growth and development for the company which will be supported by the passion and full commitment of our management team and all our employees whom we would like to thank for all their commitment to date. We are equally confident that Carlyle’s aerospace and industrial sector expertise and global network will play a significant role in Forgital’s continued growth.”

Filippo Penatti, Managing Director, Carlyle Europe Partners, added: “We admire Forgital’s strong business model, manufacturing excellence and high capability to innovate. In partnership with the experienced management team and talented workforce, we look forward to supporting Forgital’s expansion through the creation of a global growth platform, notably in the aerospace sector”.

In September, when the acquisition was completed, Luca Zacchetti was announced as Forgital’s new CEO. He said: “I am delighted to join Forgital, a Group with an outstanding reputation for advanced technology, high quality products and world-class customer service. I look forward to contributing to its further international expansion alongside the company’s talented team.”

Innovation and expansion

Innovation has always been the driving force at Forgital. The company points out that investments in research, modern productive installations, sophisticated monitoring systems and special attention

for people and environment are at the heart of all its operations. Although its history of entrepreneurism dates back to the second half of the 19th century in Italy, its growth in modern times has been driven by significant industrial investments and expansion in European and worldwide markets and, more recently, through the acquisition of two French leading companies in the sector, which became Forgital FMDL and Forgital Dembiermont.

The dynamic expansion has been confirmed by the most recent initiatives which include the takeover of the services company, RTM Breda and the creation of Fly, the high-tech machining shop that is dedicated to the production of components for the aviation and aerospace industries.

Components for aero engine and space

The Forgital Group’s activities in the aerospace sector began with the project for the Ariane IV launcher and developed along with Ariane V, Vega, PSLV and GSLV programmes. In recent years The Forgital Group has entered the aero engine market and the restricted circle of companies qualified in the supply of important airplane engine components – turbojet and turboprop – for the most important aircraft currently in production. Today the Forgital Group provides components for the manufacture of jet aircraft engines, space launchers, satellites and orbital stations.

FLY itself was founded in 2008 as a dedicated operation for the production of components for the aviation and aerospace industry. In eleven years, it has grown from just five employees to almost 200 and from a production site of 5,000 sq./mt to a plant now exceeding 25,000 sq./mt.

FLY has developed into an innovative machine shop able to complete Forgital’s production chain by allowing the transition from the supply of single components into the supply of complete finished and fully assembled components destined to the aviation and aerospace leaders worldwide.

Forgital’s aerospace business took a major step forward three years ago with the award of a contract from Rolls Royce for components for the RR Trent XWB engine. The very first Trent7000 Fan Case Assy Mod-

ule, which will equip the Airbus A330 Neo aircraft family, was delivered to the Rolls Royce headquarters in Derby, UK, in 2016.

For this module, Forgital provides titanium components for the Front Fan Case and the Mount Ring.

At that time Forgital Group President Nadir Spezzapria said: “Six years ago, when we decided to accept this challenge together with the Province of Trento, in Grigno there was only a meadow. Today FLY will close 2016 with a turnover of about 100 million euro. It is all the result of the great work done over the years.”

Serving many sectors

The Forgital Group is also a major supplier of products for the oil and gas industries. These include components, such as connectors, riser flanges and submarine well-heads for offshore wells. For surface applications it supplies ball valves components for gas and oil pipelines. In fact, it was the first company in the industry to develop the mass production of rolled (rather than cast) balls for ball valves

Forgital components for the transmission markets include bearings, gear wheels and shafts that are widely used in port and naval cranes, crane trucks, cranes for the building industry and excavators

The Forgital Group’s operations in the power generation sector go back to the early seventies with its involvement in nuclear energy development projects in Europe. Today its Power Generation business provides components for steam turbines, gas turbines, nuclear power plants, hydro power plants and wind power plants

Commenting on this September’s news of the acquisition, Carlyle Group’s Filippo Penatti is confident that the new management team will drive further international expansion. “We are excited with the appointment of Luca Zacchetti as CEO. We worked well and successfully together in two prior Carlyle investments, including AVIO. His experience in the aerospace industry together with his passion for Forgital’s business will contribute to fuelling the Group’s platform development.” n