Fives Expands Machine Tool Leadership with Pietro Carnaghi Acquisition

Fives Group, a global industrial engineering company based in France, has announced the acquisition of Pietro Carnaghi S.p.A., a leading Italian machine tool manufacturer. This transaction marks a significant strategic move for Fives to strengthen its leadership in the high-precision machine tool sector, particularly in demanding industries such as aerospace, defense, energy, and nuclear.

Acquisition Details and Strategic Context

Fives has finalized the acquisition of Pietro Carnaghi S.p.A., a company renowned for its large machine tool solutions, especially vertical lathes and 5-axis milling-turning machines. This acquisition is not merely an expansion in scale but also a strategic addition of technological capabilities and market reach for Fives.

Fives' Strategic Rationale:

• Expanding High-Precision Machining Capabilities: To enhance its ability to provide high-precision machining solutions for large and complex parts.
• Accessing Strategic Markets: To expand its presence in sectors such as aerospace, defense, energy, and mining.
• Controlling a State-of-the-Art Manufacturing Facility: Gaining control of a modern 45,000 m² industrial facility in northern Italy.
• Boosting Innovation and R&D: To foster research and development for more advanced machine tool solutions.

Complementary Expertise of Fives and Pietro Carnaghi

• Fives: As a global industrial engineering group, Fives is known for delivering advanced manufacturing solutions. Its High Precision Machines (HPM) division is a leading provider of machining solutions for high-precision industries.
• Pietro Carnaghi: Established in 1922, the company has a solid reputation for designing large vertical lathes and 5-axis milling-turning machines. With an export rate of approximately 90%, its products are globally recognized for quality and reliability.

Benefits for the Global Market and Customers

This acquisition is expected to yield significant benefits for the machine tool market and customers worldwide:

• More Comprehensive Solutions: Customers will benefit from a broader portfolio of products and services.
• Enhanced Global Reach: Fives' HPM division will operate through 24 entities worldwide, providing close and customized support.
• Increased Customer Value: Enhancing the ability to deliver innovative, reliable, and locally supported solutions.
• Reinforced Leadership Position: The deal solidifies Fives' industry leadership, while Pietro Carnaghi will benefit from Fives' global network.

Impact and Future Outlook

With an estimated combined revenue of €400-450 million and a workforce of 1,900 employees globally, the new entity will possess substantial scale to invest in innovation. In an environment where industries like aerospace and energy are seeking high-precision solutions, this merger will provide advanced technologies to meet those challenges. Particularly with the growth of additive manufacturing, the capability to precisely finish 3D printed parts will be a significant competitive advantage.

Conclusion

Fives' acquisition of Pietro Carnaghi is a decisive strategic move that reinforces Fives' position as a global leader in high-precision machine tools. The synergy of expertise, technology, and global networks promises to deliver more advanced, efficient, and reliable manufacturing solutions to critical industries worldwide.