Three Hills completes new investment in MECH-I-TRONIC, European assembly and packaging machinery specialist

Three Hills (the “Firm”) is pleased to announce the successful closing of its investment into European assembly and packaging machinery specialist MECH-I-TRONIC (or the “Company”), the ninth transaction from its fourth vintage, THCS IV, completed through the holding company Groupack. As part of the transaction, Three Hills – together with Azimut Libera Impresa and HAT SGR – contributed a total of €105 million in growth capital to support the Company’s ambitious international expansion strategy, including further M&A.

MECH-I-TRONIC has established a strong presence in the fragmented European high-precision machinery market. The Group operates in the pharmaceutical, cosmetics, electromechanical, and industrial automation sectors, combining deep mechanical expertise with advanced software and systems integration capabilities.

The European assembly and packaging machinery sector, valued at €167 billion in 2024, is projected to grow at approximately 7% per annum, driven by strong underlying demand for automation, recyclable and refillable packaging solutions, and increasingly integrated, data-driven production processes.

MECH-I-TRONIC has successfully executed a regional buy-and-build strategy, integrating six specialist businesses to date, and has identified a robust pipeline of future acquisition opportunities aimed at broadening its product offering and geographic footprint.

This investment via Three Hills Capital Solutions IV (THCS IV), some of Azimut Libera Impresa’s PE funds including AZIMUT ELTIF – Private Equity Ophelia, and HAT Technology Fund 5 will provide significant further resources to help the Group scale its operations through organic growth initiatives and targeted acquisitions. AZIMUT’s participation comes on top of the initial investment of €7 million made in 2023 by AZ RAIF I – YHOX, advised by Electa Ventures, to seed the initiative and represents a validation of their initial investment thesis.

Marco Giovannini, Chairman of MECH-I-TRONIC, said: “This partnership with Three Hills, Azimut Libera Impresa and HAT marks a key step for MECH-I-TRONIC as we continue to scale our platform globally. Their flexible capital approach and deep experience in supporting entrepreneurial growth will allow us to accelerate both our M&A and integration efforts, while enhancing our ability to serve customers with innovative mechatronics solutions. We are excited to start this new chapter together.”

Marco Anatriello, Partner at Three Hills, commented: “We are delighted to partner with MECH-I-TRONIC, an outstanding business operating in one of Europe’s most resilient industrial sectors. The company’s combination of technical excellence, entrepreneurial culture, and ambitious growth strategy creates a strong foundation for long-term value creation. We look forward to supporting Marco Giovannini, and the wider team of entrepreneurs and managers, in delivering their strategic vision and unlocking the Group’s full potential.”

Pietro Muzio, Partner at Azimut Libera Impresa SGR, added: “We have known Marco Giovannini’s entrepreneurship for a long time and have great appreciation for his capabilities and vision. As with another initiative in a different sector, we are committed to promoting aggregation initiatives in strategic industrial sectors with the aim of building strong, future-ready industrial platforms enhancing the legacy and value of the family businesses involved.”

Ignazio Castiglioni, Co-Founder and CEO of HAT SGR, added: “We are very proud to back MECH-I-TRONIC, an innovative and extremely interesting initiative in the field of mechatronics and automation, with cutting-edge technological solutions. As HAT, we will support MECH-I-TRONIC’s growth plan and buy-and-build strategy towards the creation of a pole of excellence, capable of scaling the market, strengthening its competitiveness and consolidating its leadership.”

This is the ninth investment from Three Hills’ fourth vintage, THCS IV. The fund, which closed at over €1 billion in October 2022, focuses on delivering downside-protected investments in entrepreneur-led businesses and partners with companies to drive strategic, operational, and ESG improvements.

Meti Corporate Finance acted as financial advisor assisting Groupack in the fundraising process and in the structuring and execution of the transaction. BSP acted as legal advisor, while Deloitte carried out the financial vendor due diligence.

On the investors’ side, OC&C advised on the business due diligence, Alvarez & Marsal advised on the financial due diligence and ERM conducted the ESG due diligence. Giovannelli e Associati, Legance, Orrick Herrington & Sutcliffe, and Loyens & Loeff acted as legal advisors and oversaw the tax and legal due diligence.