Sabaf S.p.A. (BIT:SAB) signed an agreement to acquire 51% stake in Mansfield Engineered Components, Inc. from Bruce, Steven and Claudia Cummins for $10.5 million on July 14, 2023. The purchase price of $10.5 million was determined based on provisional figures showing a positive net financial position of $0.6 million and working capital of $14 million, and will be subject to adjustment based on MEC's net financial position and working capital figures to date. Bruce, Steven and Claudia Cummins will still own 49% stake in Mansfield Engineered Components. As part of agreement, Bruce, Steven and Claudia Cummins will provide a call option in favour of Sabaf for the remaining 49% of MEC's share capital (exercisable in 2028) and a put option in favour of the minority shareholders (exercisable from 2025 to 2028). The valuation of the residual stake will be based on an Enterprise Value equal to 8 times MEC's average EBITDA of the two financial years preceding the date of exercise of the relevant option, adjusted for the net financial position at that date. Mansfield Engineered Components has reported revenues of $35.7 million and EBITDA of $2.5 million in 2022. Bruce and Steven Cummins will work as Chief Executive Officer and Vice Chairman, respectively.

Sabaf S.p.A. (BIT:SAB) completed the acquisition of 51% stake in Mansfield Engineered Components, Inc. from Bruce, Steven and Claudia Cummins on July 14, 2023.