MILAN—Manuli Rubber Industries S.p.A. has acquired a majority share in Melbourne-based Ryco Hydraulics Pty. Ltd., and will merge its two main divisions with Ryco to form what it claims is the fourth-largest business in the hose and hydraulics fittings industry, according to Ryco.
Financial details of the transaction were not disclosed.
MRI will combined its Manuli Hydraulics (design and manufacture) and Fluiconnecto (distribution and service) divisions with Ryco "to provide an enhanced product range and full global supply and service offering to customers of both companies," according to a Feb. 3 news release from Manuli.
The combined business will employ more than 4,500 people and have projected revenues of about $550 million, according to Manuli. Roughly 80 percent of the sales came from Manuli and the rest from Ryco.
"This transaction captures the full benefit of combining complementary product ranges, engineering and innovation capabilities, a strategically located manufacturing footprint and a truly global market reach," MRI CEO Dardanio Manuli said. "We are excited about the potential benefits and growth opportunities that will result from the best of what both MRI and Ryco bring to the market."
Ryco boasts sales in 30 countries across the agricultural, defense, construction, industrial, logistics, forestry, waste management, marine, and above and underground mining industries. MRI has sales in 90 countries and serves all of the aforementioned industries, as well as oil and gas markets, according to Manuli.
MRI was founded in 1935 and Ryco in 1946, bringing more than 150 years combined experience together. And the businesses share a similar philosophy, according to Manuli.
"Both MRI and Ryco are family owned and run private companies with similar cultures and a shared commitment to remaining agile, responsive and customer-focused," Ryco CEO Leigh Morrison said. "This merger creates benefits greater than either company could achieve alone."
Manuli said Morrison will continue in his role as Ryco CEO and will be invited to join the MRI Board. On Ryco's end, a new Board has been established with MRI representation.
For the most part, the branding is expected to remain the same, though "depending on market and customer positions, it may make sense for each company to represent and offer the other company's range," Ryco said in a statement.