Callista acquires Speedline S.r.l. from RONAL GROUP
Addition to Callista’s portfolio of automotive companies
Munich, 18.10.2023. Callista Private Equity GmbH (“Callista”) announces the acquisition of the company Speedline S.r.l. including the proprietary brands “Speedline” and “Speedline Corse” from RONAL GROUP (“Seller”) through Callista Asset Management 20 GmbH (“Buyer”).
Located west of Venice, the company specialises in the development and production of high-quality light alloy wheels for passenger cars and is considered a pioneer in the field of flow-forming technology. The company handles almost all production steps internally and is a trusted partner for premium and luxury OEMs due to its high-quality standards.
The Seller decided to divest Speedline in view of negative economic results to ensure the continuity of the plant under new ownership. The Seller retains ownership of the company and brand rights around “Speedline Truck”. The parties have entered into a brand coexistence and non-competition agreement, which essentially precludes entry into each other’s respective businesses.
The challenges in the automotive industry as a whole, intensified by the Covid pandemic, the Ukraine war and increased raw material prices, put heavy pressure on Speedline’s cost structure and combined with an oversupply of manufacturing capacities in the European wheel market, inevitably led to a severe success crisis. Nevertheless, Christopher Irion, Callista’s Chief Investment Officer, remains optimistic: “We know the challenges that need to be overcome and are ready to tackle them together with the people on-site.”
As the new owner, Callista will shift the focus towards the premium customer segment, which shows great potential in terms of sales and profitability. The Speedline brand is still well-known and highly esteemed in the racing market and automotive aftermarket, providing a promising baseline for strategic reorientation. Additionally, Callista’s Group experts, who have already achieved significant cost savings in recent transactions, will join the task force for the scheduled reorganisation. An adaption of the processes and structures to those of a medium-sized niche provider is also planned to arrive at the optimized plant layout for the premium brand perimeter.
This acquisition of Speedline marks the sixth buy-side transaction of Callista in 2023, bringing the portfolio to 9 companies.