MILAN—Two hose and hydraulic fitting companies with similar business philosophies have combined to form the fourth-largest firm in the industry, as Manuli Rubber Industries has acquired a majority share in Melbourne, Australia-based Ryco Hydraulics Pty. Ltd.
The two rubber goods firms said Feb. 3 in a joint statement that Manuli will merge its two main divisions—Manuli Hydraulics (design and manufacture) and Fluiconnecto (distribution and service)—with Ryco, extending the new company's reach across more than 120 countries and projecting annual revenues of about $550 million. About 80 percent of that will come from Manuli and the rest from Ryco, according to data from Manuli.
Financial terms of the transaction were not disclosed.
"We have known and admired the Manuli business for many years," said Ryco CEO Leigh Morrison. "Manuli has a culture and business philosophy that is very similar to our own and will be a great fit. The combination of our businesses creates an agile organization, generating some great opportunities across all markets."
The combined business now employs more than 4,500 people, the sum of 3,700 Manuli workers and 870 Ryco employees, according to Manuli.
MRI CEO Dardanio Manuli called the two companies "highly complementary," providing each other with benefits that the two companies could not achieve alone, at least not in the short term.
"More specifically, we will benefit from each other's manufacturing footprint, as well as the product and process knowledge developed by both companies over their long history," Manuli said.
No job losses, redundancies or plant closures will result from the transaction, according to Milan-based Manuli.
"More than anything, this deal will result in additional stability and continuity for both businesses," Morrison said. "Both management teams are undertaking a detailed process to assess the many positive synergies and benefits.
"While change is inevitable, it will be positive change that supports new opportunities from this transaction."
Branding consistency, market headwinds
Branding is expected to remain the same between Manuli (including Manuli Hydraulics and Fluiconnecto) and Ryco, with each company retaining its own labeling and service offerings, though there may be some exceptions, Morrison said.