The document summarizes a transaction involving an Italian electrical contracting group that is undergoing financial restructuring. The group has over 350 employees and operates in industries like oil and gas, airports, ports, and steel. While the business is performing well with a 7.5% EBITDA margin, financial problems arose from a large investment in a UAE joint venture that resulted in unpaid invoices. The client is seeking investors to take over the group completely debt-free or become a strategic partner to enhance the company's assets.

1. Arkios Italy
Blind Profile – Leading Italian Electrical Contractor
Transaction Outline
Our client is a leading Italian Electrical Contractor which operates worldwide in the oil & gas, airports, ports, iron
& steel and tertiary fields. The Target of the transaction is a Group, based in Northern Italy (with subsidiaries in
Northern, Central and Southern Italy), with a 2012 aggregate turnover of about 45 € million and more than 350
employees.
The Target Group is facing a corporate and financial restructuring under a pre-insolvency workout agreement
(Concordato in Continuità) in order to reduce and renegotiate financial and commercial debts according with the
Italian procedure of agreement with creditors (like US chapter 11).
From an economic point of view the business is performing well, with an Ebitda Margin of about 7,5%.
The reason of the financial problems is not due to business and market reasons and/or business model, but in a
large investment done in a JV in the UEA, which resulted in large amount of cash anticipated for Guarentee and
Perfomance Bonds Vs. relevant Commercial Credits (related to 3 large projects completed) never paid by local
Subcontractor.
Now the shortage of financial resources is undermining Group’s ability to growth and the continuity of the
business. The Company needs some cash injection, in order to partially pay suppliers and banks (under a
Concordato in Continuità) and – partially - in order to finance net working capital.
The client entrusts us with the task of seeking investors interested in a company take over, or strong strategic
partners that can enhance Target Company assets.
Potential Investors interested can buy the Target, completely debt free, with the real estate property eventually
included, presenting through Arkios Italy a binding offer.
Please refer to section “Key Investment Rationale” (at the end of the document) to better understand the
complete reasons and strategic/financial rationale of the Transaction Outline
The Group
The Group is specialized in the construction and maintenance of industrial distribution plants of medium and low
voltage, technological plants and in the construction of electrical panels and is composed by a Family Holding
which controls 3 Italian operational companies and 1 engineering subsidiary. The Group is one of the leading
Italian players specialised in the construction and maintenance of electrical plants especially in the Oil & Gas
segment.
(Central Italy) (Northern Italy) (Northern Italy) (Southern Italy)
Production 3 Production 1 Engineering Production 2
Family Holding

2. Arkios Italy
Production 1: leading Company of the Group, located in Northern Italy, active in oil & gas, airports, ports,
iron & steel and tertiary fields. The Company is specialized in the construction and maintenance of
industrial distribution plants of medium and low voltage, technological plants and in the construction of
electrical panels.
Engineering: subsidiary focused on engineering processes; thanks to the technical office, the Group is able
to design and produce every kind of industrial electrical plant.
Production 2: company specialized in electrical and instrumentation design and erection for metallurgical
and power plants.
Production 3: subsidiary of the Group, located in Central Italy, active exclusively in the Oil & Gas segment.
Products & Services
The Group, through over 350 employees, operates in
designing, production, installation and maintenance
of:
Industrial medium and low voltage
distribution plants;
Automation and process control systems;
Electrical and instrumentation erection;
Electromechanical plants (HVAC, lighting,
networking, fire fighting and security
systems);
Electrical switch and control board;
Instrumentation panels.
The Group is able to provide its Customers with whole needed support at every stage of progress of the project:
from the feasibility study to realization, commissioning, management and maintenance of plants both for
infrastructures (buildings, airports and ports) that for industry (energy, steel, petrochemical).
Fields of application & Main Customers
The Group, thanks to the experience of over 50
years of activity in the electrical sector, is active in
different segments with a growing predominance
of the Oil & Gas field:
Oil & Gas
Power plants
Metallurgical plants
Buildings
Ports
Airports
Postal
Public works
Telco
Through the qualifications obtained during years, the Target Group is now included in the Approved Vendor List
of leading manufacturing and industrial companies worldwide, among them: Nuovo Pignone – GE Oil & Gas,
ABB, Siemens, Ansaldo, Fincantieri, Schneider Electric, Techint, Selex ES (Nidec), Alstom Power.
Revenues Breakdown 2012 – Activities
Revenues Breakdown 2012 – Fields of Application

3. Arkios Italy
The Group has also developed different partnership with these top worldwide players thanks to its reliability and
the ability to integrate with each customer requirement.
Main Economics
The Group – in the past years – increased its consolidated turnover from € 44 mln. (2007) to € 60 mln (2011). Due
to current financial problems the Group has been forced to slow down its business to actual € 45 mln. Turnover
(2012)
Despite this the Target has already a backlog in progress that cover the production for the next year for an
amount of c.a. € 30 mln euro and 2013 forecasted revenues are about € 35-40 million.
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Key Investment Rationale
The Deal represent an opportunity for player in the Electrical Engineering or Engineering (in general) sector, as
well related sectors to enter in a profitable and stable business thanks to its acquired portfolio of clients (all
Leading Global Subcontractors in the oil & gas, power and metallurgical plants) able to provide the Target with
relevant and profitable projects in growing or stable industries. The actual portfolio of clients and the partnership
with these subcontractors, guarantee a stable in-flow of projects and an opportunity to enlarge the spectrum of
feasible projects in oil & gas, power and metallurgical plants as well as in related sectors.
The Target has a proven ability to manage strategic and multiple large projects both in Italy than abroad - thanks
to its internal processes and business model - with a profitable use of the skilled workforce (over 350 resources,
both internal than temporary hired) with a great flexibility, able to satisfy the needs of sophisticated clients with
an interesting profitability (average contribution margin 15-18 %, with top project with over 40x% of contribution
margin.)
Existing Backlog of Orders (c.a. 30 mln.) and the solid partnership with Clients (Leading Global Subcontractors)
guarantee the investor with stable and profitable revenues which represent the floor of the investment, that can
guarantee an extremely interesting cash-in with very high ROI. This is enforced by the small investment required
(payments of part of commercial and financial debts under a Concordato in order to permit the continuity and
some cash injection in order to finance net working capital) compared with the cash-in projection.
In summary the Deal has:
(1) a strong “industrial” rationale represented by the opportunity to enter in a growing/stable market with
the opportunity to leverage on specific know-how (oil & gas, power, etc.) and business model (low capital
intensive, based on the ability to optimize the use of human resources), relevant industrial partnership
with leading subcontractors that guarantee a constant in-flow of projects;

4. Arkios Italy
(2) a strong financial rationale, based on the fact that the deal represent an opportunity to enter - at a
“discounted price” (under a Concordato in Continuità)- in a running business that – according to business
model – can be viewed as an investment in a “bond” that guarantees a high return on the invested
capital, with the opportunity to enlarge the business, highering the ROI and the value of the “coupon”
(yearly cash-flow)
In detail:
• Replicability of the Engineering skills in the Oil & Gas Industry within the industry:
o Throughout: (a) references projects in Oil & Gas and Metallurgical Plants, (b) its specific know-
how in working in these industries, (c) specific certifications and (d) credibility and partnership
with Global Leading Subcontractors, the Group has a consolidated, proven and relevant know-
how that can be deployed ad replicated within the Oil & Gas industries, as well related industries
• Portfolio of Clients
o The Group worked with all major multinationals (Engineering Subcontractors) operating in the Oil
& Gas and Power sector, it’s approved on their Vendor List and has developed long term
relationship with these clients. This represent an important and unique asset for players
• HR flexibility:
o internal process organization and management show an ability to optimise the use of skilled
human resources (350 people) in a profitable way, with an interesting margin (c.a. 7,5% Ebitda).
• Qualifications
o The Group can count on every quality certification ISO 9001, ISO 14001, BS OHSAS 18001, SOA –
OG1 IV; OG10 V; OG11 IVbis; OS4 III; OS19 I; OS28 V; OS30 III, RINA ISO 9001; IQNET 9001; SOA
RINA, needed to work both for private and for public customer. Specific qualification for industry
sectors, beside being on the certified Vendor List of primary Global and worldwide
Subcontractors.
• Partnership
o Thanks to the appreciated capability and reliability, the Group has signed different strategic
partnership with many Global Subcontractors (e.g. Selex SE - ex Elsag Datamat, Finmeccanica
Group; the Japanese group Nidec with Nidec ASI –ex Ansaldo Sistemi; Schneider Electric, etc.),
that are both top Clients and Strategic Partner, in order to enhance the long term relationships
and to develop the synergies with top clients and final Main Contractors.
For further information about this transaction, please contact
Paolo Cirani Alberto Della Ricca Federico Scaravelli
CEO & Founder Partner Sr. Analyst
+39 335.68.40.737
paolo.cirani@arkios.it
www.arkios.it
+39 347.22.03.181
alberto.dellaricca@arkios.it
www.arkios.it
+39 340.05.30.793
federico.scaravelli@arkios.it
www.arkios.it