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Carlyle sells stake in Italian boilermaker Riello

The Carlyle Group has sold its 50 per cent stake Italian boilermaker Riello to members of the Riello family in a deal that it is understood to be valued at around E600m. The transaction represents the firm's fifth exit from its first European fund and will lend further momentum to its ongoing efforts to raise a follow-up fund.

Carlyle first invested in Sigla Engineering, the holding company of Riello Group, in 2000 to help the family branch headed by Ettore Riello buy out another branch of the family from the business. It is thought to have a generated a two time return on the sale of its stake to Ettore, Lucia and Roberta Riello.

Edoardo Lanzavecchia, managing director of The Carlyle Group said: 'We are delighted that the family, led by Ettore Riello, can now own 100% of Riello. We wish the Riello family, the Board of Directors and all the employees a bright and successful future.'

The other realisations from Carlyle's first European fund include Le Figaro, Andritz and Honsel Technologies. The firm is trying to raise around E2bn for its second Europe fund and is understood to have got more than half way towards its target. Investors say the fundraising has gathered momentum in recent months.

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