The Carlyle Group Sells 50% of Riello Group to the Riello Family

Milan, Italy - Global private equity firm The Carlyle Group announces today it has signed an agreement to sell to Ettore, Lucia and Roberta Riello its 50% stake in Sigla Engineering SpA, the holding company of Riello Group. Palladio Finanziaria, a merchant bank based in Veneto, was a co-investor in the Carlyle stake.

Riello, headquartered in Legnago, Italy, is one of the European leaders in the domestic heating sector and is the world leader in domestic burner production. It is also one of the top four manufacturers of wall-mounted boilers, with a strong distribution network in Italy.

Carlyle invested in Sigla Engineering in July 2000, to support the family branch headed by Ettore Riello to buy out another branch of the family from the business.

Over the last four years, Carlyle has worked side by side with the Riello family on the strategy to grow the business, both through organic growth and acquisitions. In particular, following the investment by Carlyle, the group successfully acquired the British distributor, Vokera and established an important production plant in Poland.

Edoardo Lanzavecchia, Managing Director, The Carlyle Group said, “We are delighted that the family, led by Ettore Riello, can now own 100% of Riello. We wish the Riello family, the Board of Directors and all the employees a bright and successful future.”

Carlyle made the investment in Riello with the Carlyle Europe Partners I fund, which closed at €1 billion, and today is fully invested.

The sale announced today is the fifth successful divestment by the fund launched in 1998. Realised investments include Le Figaro, Materis, Andritz and Honsel International Technologies.

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