Holding Parts (HParts), an Italian subsidiary of Italian investment firm Holding Industriale (Hind), is evaluating aftermarket acquisitions and onboarding a financial investor, said Luca Ferraris, chairman of HParts and CEO of Hind.

The scouting process is being conducted internally, with HParts currently reviewing several targets with solid financial fundamentals, good cash-generation capability and growth potential that could accelerate within a structured group, he said. If market conditions remain supportive, a new acquisition could materialise in around 18 months, during 2027, he said.

M&A growth aims to consolidate the company’s position in the aftermarket for earthmoving machinery, heavy-duty vehicles, and automotive sectors, which continue to show very favourable structural dynamics, he said.

The Italian aftermarket sector was worth EUR 55.5bn in 2024 and employed around 400,000 people, according to think tank Osservatorio della Camera di Commercio di Torino. AUTODOC, Autohero and Norauto are among the operators active in this space.

“We are maintaining a selective pipeline of opportunities in adjacent or complementary sectors where integration can deliver tangible benefits across product, distribution and profitability,” Ferraris added.

Desirable candidates are companies with revenues of approximately EUR 15m, a clear position within their segment and solid internal processes, he said.

HParts focuses on targets’ product quality, technical robustness, and organisational culture, noting these are key elements that facilitate smooth integration and generate meaningful synergies across the group.

With a combined turnover of EUR 30m, HParts aims to create a hub of excellence in the aftermarket space, delivering long-term value while preserving managerial continuity, he explained.

Regarding the financing of its growth plans, HParts adopts a balanced approach to financial leverage, Ferraris said. Its recent transactions, such as this month’s acquisition of Omec, an Italian manufacturer of automotive components for aftermarket sales, have been structured with this same approach, which it intends to maintain for future acquisitions, he said.

Bolt-on initiatives on its radar can be financed through a mix of instruments depending on the size and industrial nature of each project, Ferraris said, adding that HParts’ pipeline includes larger potential targets that could materially scale the group.

The company is therefore evaluating solutions that could support it in a more structured phase of industrial and financial growth, he said. For larger opportunities, Ferraris said, “We are open to involving financial partners who share our industrial vision and can support a more ambitious growth trajectory.”

According to two sources familiar with the situation, the company aims to reach a EUR 50m revenue milestone within the next three years, with M&A explicitly supporting this goal. Both sources confirmed that Hind has initiated an internal process to evaluate a financial partner to support its accelerating growth strategy, particularly for HParts.

The involvement of a financial partner would provide the necessary capital to pursue these larger deals, complementing the internal resources currently used for smaller, bolt-on acquisitions, one source said. The same source added that Hind’s management has already mapped potential takeover candidates and is engaged in early-stage contact with some targets.

According to another source, the potential roster of private equity (PE) funds interested in the opportunity could span several industry-focused mid-market funds that have been active in Italian industrials and logistics, including firms such as Orienta, Aksia, IGI Private Equity or Alto Partners.

For Italian companies in the automotive aftermarket sector, M&A transaction multiples typically fall between 6x and 8x EV/EBITDA, the first source said. Highly profitable companies with strong cash generation, niche positioning or those that offer clear and immediate cost/distribution synergies to a strategic buyer such as HParts can command higher multiples, often ranging from 8x to 10x, the source continued.

Ferraris declined to comment.

The aftermarket offers significant consolidation potential, and an investor with a deep understanding of the sector’s technical dynamics could bring meaningful value, especially in larger-scale transactions currently in its pipeline, Ferraris said.

Headquartered in Turin, HParts is controlled by investment holding HIND, of which co-founders Claudio Rovere and Ferraris own the majority and a minority stake, respectively. HParts invests long-term in Italian SMEs to foster growth, internationalisation and facilitate generational turnover issues. It has 150 employees and aims to become a reference point in the aftermarket space.

Earlier this month, HParts acquired Omec, an Italian manufacturer of automotive components for aftermarket sales, taking the number of companies under the control of HParts to five. Omec was acquired via HParts’ Coram subsidiary. The transaction stems from HParts’ ambition to strengthen its presence in the components segment, Ferraris said. The integration with Coram follows an industrial rationale, built on full complementation between the two companies: customer base, product range and production processes align seamlessly, he said.