It has the hallmarks of the longest tractor manufacturer take-over in history but in the end has resulted in nothing more than a management buyout
The Maschio/Polo Group owned by Maurizio Maschio and Enrico Polo, already with a 50% holding in the Campodarsego company’s shareholding structure, will acquire the balance of Antonio Carraro S.p.A. shares through an investment program, and as result control the operation as a private company.
Talk of an Antonio Carraro (AC) take-over has been running strong since the tractor manufacturer denied AGCO was tapping at the door with a wad of cash as far back as 2015, a situation strongly denied by AC at the time.
The management of Antonio Carraro was insistent that although flattered by the compliments paid to their company by the President of AGCO, (Martin) Richenhagen, no such deal was in progress.
Antonio Carraro’s management at the time did add that for a number of years they had been contacted periodically by almost all of the world’s tractor manufacturers, inquiring after the opportunity of a collaborative synergy to be had from the manufacturing of compact specialised tractors, which almost none of the main manufacturers produce themselves.
Essentially, AC management made it clear they were only interested in possible collaborative agreements that would result in the global growth of sales. And made any deal look much sweeter by confirming AC tractor sales in 2015 were up by more than 10% on 2014.
And the forecast for 2016 was for a further increase in sales due to the start of production of the Mach 2 steering reversible twin-track tractor and a new series of highly technological tractors that AC believed would give them a clear competitive edge.
As time passed, the dream deal AC was waiting for was handed to them in late 2016 when
Maurizio Maschio and Enrico Polo, owners of the Milleuno-Imoco group became shareholders in Antonio Carraro spa.
The deal provided an immediate increase in capital to finance a 5-year industrial strategy that Company President Antonio Carraro said at the time, “Will bring about an important level of corporate growth in terms of increased capacity of the production lines, new product development, the conquering of new markets and new segments for compact tractors.
Company President Antonio Carraro went on to say, “This is not a fleeting financial move, but a long-term partnership. It is a necessary step toward entry at an international level and to begin the process of a future floatation on the stock market. We will work with new planning, control and programming systems as well as through a process to bring about the ‘depersonalisation’ of the family business in order to become a patrimony of stakeholders.
“We need to look toward the next 50 years. The world will move forward, and we have to be ready to face future challenges with a solid, capitalised and highly competitive company. We have growth and development projects for emerging markets, for the USA, Turkey, India, Russia, Brazil and the Middle East above all in the markets for the mechanization of specialised agriculture (vineyards and fruit plantations) where we are currently world leaders,” Company President Antonio Carraro concluded.
At the time of the Maurizio Maschio and Enrico Polo investment, AC was in 100 countries and had 650 sales outlets via importers and dealers. In 2016, it had a gross operating margin of 10%. Around 350 people were employed at the Campodarsego single production unit and the commercial subsidiaries in Spain, France, Turkey, Oceania and South America.
It appears some management influence began to trim back costs but by August 2021 when a loan of 7 million euro (au$11.3 million) was taken out with Cdp and Sace to support the growth of Antonio Carraro SpA, its worldwide market reach was still well and truly intact with the company exporting 65% of its production to 42 countries around the world, with 500 employees, 4 subsidiaries (Australia, Spain, France and Turkey) and 650 dealers and sales outlets.
The 7 million euro (au$11.3 million) was offered with a duration of 6 years and guaranteed by Sace through the instrument of the Liquidity Decree intended to support Italian companies affected by the Covid-19 emergency.
From there it has appeared business as usual until the passing of founder Antonio Carraro in March 2022, he was 90 years old.
Essentially, the AC tractor range was created by Antonio Carraro and gave a strong boost to the agricultural economy in the Mediterranean Basin and the mountains in the Alpeadria area, southern Italy, Spain, Greece, Portugal as well as Germany, France and all of Europe.
Active in the company, up until he passed away, Antonio Carraro constantly followed the work of the Research and Development Department, where he spent his days.
In the home-grown Italian market, the Antonio Carraro brand leads each year with the most new registrations in the compact tractor segment. And is cited as being amongst the seven top tractor brands in the world.
Antonio Carraro at the start and today
The company cites its foundation as 1910 when Giovanni Carraro, father of former president Antonio, began manufacturing a multifunctional agricultural machine that combined the capabilities of a plough, tiller, seeder, harrow and. In a short time, his small workshop was transformed into a large industrial operation.
After the split of the Giovanni Carraro operation, in 1960, Antonio Carraro the youngest of Giovanni’s six children and the one that appeared to inherit his father’s entrepreneurial vision founded Antonio Carraro SPA.
Along with sister Bianca and father Giovanni, they began production of compact tractors for specialised agriculture, under the rotating four-horse brand, a Persian symbol of fertility and strength dating back to the 1600s.
From the beginning, one success led to another, from 1970 the AC tractor range had broken away from all competitors and the Antonio Carraro brand became a market leader in the compact tractor sector.
In 1973 Antonio Carraro founded the “Centre for Study and Research”, one of the first in the Italian market, where a team of technicians were dedicated exclusively to the research into innovative vehicles for agriculture, in collaboration with universities in Padova, Bologna, Berlin, Humboldt and Sidney.
In 2000 the company’s first expansion plan began with the construction of new warehouses in Campodarsego along with the reorganisation of all production departments, in line with Porsche Consulting from Stuttgart.
Production is divided into more than 80 models for the specialised agriculture sector (vineyards, orchards and row crops), as well as a series of vehicles for civil maintenance (urban cleaning, road traffic and maintenance of public and sports arenas).
The construction philosophy makes use of the “lean” principles, introduced in 2000 by Porsche Consulting. It stands out for its constant innovation and production flexibility: each tractor is “tailor-made”, and built on the basis of the requirements of each customer.
Marcello Carraro, CEO of Antonio Carraro SpA commented: “We are very satisfied with this operation which will finance the expansion works of the new production departments of our company. The positive and ever-growing sales trend of our tractors worldwide over the past five years has given us the impetus to undertake new investments.
Today, our company is structured and increasingly projected into the future, with a brand recognised throughout the world for the quality of its products equipped with sometimes unique innovative solutions.
Now the acquisition process has begun, the business acumen and experience of Dr. Maschio, currently President of the company, will be at the complete disposal of the company with the aim to achieve its greatest business goals, with full respect for its origins and the mission of its founding designer Antonio Carraro.
Dr. Maurizio Maschio commented, “The investment plan will meet the future challenges and is confirmation of how much I personally believe that Antonio Carraro S.p.A. is a source of excellence on both the Italian and international scene and that it is still full of untapped potential. Dr. Marcello Carraro will remain in the company in an institutional role.
“The financial commitment to this company with its historical, illustrious brand is substantial. I am happy and certain that right from the start we will be able to achieve important results in terms of global growth,” Dr. Maurizio Maschio concluded.
