Founded in 1929 in Minneapolis, Continental Machines Inc. began producing hydraulic components (mainly valves, as well as vane and piston pumps) in 1949, initially making these products for its internal machine tool production but subsequently (1962) for sale to third parties. The hydraulic components division, which recorded a turnover of USD$18.4 million in 2010, markets its products across the US through an established network of distributors. The acquisition was financed through a capital increase at Duplomatic Oleodinamica, subscribed by the majority shareholder AXA Private Equity, which entered the company’s capital in 2008, by 3 of the Italian managers, 2 of whom are already shareholders in Duplomatic, and 2 top former managers of Continental. As a result of this acquisition, Duplomatic, based near Milan and manufacturer of hydraulic valves primarily for industrial applications, has entered the US market – the biggest in the world in the field of hydraulics – through a very well-known brand in the sector and a firmly established network of distributors. The integration strategy between the two companies aims to expand the hydraulic components division’s catalogue, by adding Duplomatic products, and to launch joint sales initiatives aimed at maximising the potential synergies arising from the combination. AXA Private Equity will support Duplomatic in implementing this major acquisition in the US, which is consistent with the Private Equity’s strategy focused on speeding up the development and internationalisation of its investee companies.