Made in Italy conquers Australia: Usco of Modena acquires Schlam

Yesterday, the rhetoric of Made in Italy being 'eaten up' by foreign companies and Italy being a 'land of conquest' for foreign groups was dispelled by the Modenese group Usco. Founded in 1989 by Massimo Galassini, and active worldwide in the components sector for earthmoving machinery, Usco has in fact taken over the Australian mining group Schlam. An acquisition on the other side of the world (where, by the way, Usco was already present), which strengthens a global group active in the construction and mining sector, with over one billion euros in turnover, an Ebitda of around 15% and almost 3 thousand employees. "In Australia we are already present in the construction sector in an important way," explains Galassini, who in addition to being founder is also managing director and controlling shareholder, "but now we are entering the mining sector. The acquisition of Schlam is strategic for us, because it is a quality company that opens an important door to enter mining.

The Usco group, in which Galassini has a majority share and One Equity Partners a 49% stake, is no stranger to growth through acquisitions. In the last five years it has invested, precisely in M&A, some EUR 330-340 million. But the largest share, say Galassini and advisor Eidos Partners, was used for this very operation. The group is already present practically all over the world: from the United States to Canada, from Brazil to many European countries, as well as South Africa, Dubai, India, Korea, China, and - of course - Australia. And in recent years, it has achieved significant growth: turnover has risen from 330 million in 2014, to 560 million in 2019, to 900 million today, and to over a thousand after the acquisition of Schlam.

Founded in 1996, Schlam is headquartered in Western Australia but has recently expanded its operations to America and China. The group builds so-called 'truck beds', i.e. mine truck bodies with a capacity of more than 200 tonnes. This is an important part of mining, because the capacity and strength of these caissons is critical to the performance of the mine itself. 'They are the leader in Trucks Beds in Australia, and for us this is an exceptional opportunity for global growth,' Galassini continues. But also from the Australian group's point of view, the transaction represents a great opportunity: 'Joining Usco gives us a global presence, manufacturing expertise and technology for steel products,' adds CEO David Haslett. Usco was assisted in this transaction by Eidos Partners and Bnp Paribas as financial advisors, and Schlam by Gresham.