Stefano Palmieri, CFO of Comer Industries, discusses the growth of navigation, acquisitions, and management of an international company with strong family ownership.
Global Finance: What has been your biggest challenge since joining Comer Industries?
Stefano Palmieri: After I joined in 2021, Comer experienced a significant expansion, which was marked by the acquisition of the German team Walterscheid that year. [a supplier of powertrain systems for agricultural, construction, and other off-highway vehicles and machinery]which had revenues of around €400 million, roughly the same size as Comer at the time.
For a company with no prior experience in major acquisitions, putting together such a complex business was a major challenge for the senior team under the leadership of the CEO. Greater value was created through footprint optimization, plant consolidation, a more balanced global manufacturing base, new customer contracts, and operating cost synergies. Supported by favorable market conditions, we closed 2023 with revenues of €1.2 billion and EBITDA of more than €200 million.
From a financial perspective, the biggest challenges were bringing together the financial and cultural teams, generating quick cash flow to repay the acquisition and implementing the processes needed to transform Comer into a truly international company.
GF: Why is it important to have a wide range of locations?
Palmieri: Our footprint covers many areas: Europe, with headquarters and main operations in Italy and a manufacturing hub in Germany; in the US, where we consolidated three production sites into one near Chicago; India, with a major facility in Bangalore; China, with a major plant in Shanghai; and a smaller presence in Brazil and, as of January, Japan and Thailand.
This global move reflects customer demand for manufacturing near their assembly lines as we produce large, heavy-duty components for leading agricultural and construction manufacturers such as CNH, John Deere, AGCO, Caterpillar, and Komatsu. A flexible global manufacturing network enables us to respond quickly to customer needs and manage volatility—now the new normal—by shifting production to maximize cost amid operational disruptions, pricing, and other market challenges.
GF: What are the main challenges of managing an international team?
Palmieri: Human relationships are always important in our culture; we are a people-driven company that believes value and culture are best communicated through direct interaction. We actively promote international exchanges, sending people and young people in general abroad and bringing our colleagues to Italy to mix cultures and share best practices.
This approach is evident in our recent travels. At the beginning of this year, we acquired a large part of Nabtesco’s electrical equipment business, with a revenue of €270 million, adding about 800 partners, half in Japan and the rest in China and Thailand. The deal was made possible by a long-standing partnership dating back to 2017 and a strong cultural fit, particularly in terms of shared manufacturing discipline and philosophies such as the Toyota Production System and World Class Manufacturing.
Cultural and language barriers still exist, but mutual understanding of practices and values has made integration possible and promising.
GF: Comer is a publicly listed company, and the Storchi family owns 51%. How does this mix of community and family identities shape how the group is treated?
Palmieri: One of the company’s greatest strengths is the commitment of its leadership: in particular, our chairman and CEO, Matteo Storchi, who leads the company on behalf of the founding family. This creates a unique combination: an authoritative business CEO and the long-term vision of the owner. Unlike most publicly listed companies, where CEOs are often driven by short-term results, this structure makes bold decisions and a medium- to long-term vision.
This approach proved critical after our record year of 2023, when revenues fell by more than €300 million over two years. Although we are taking decisive steps to reduce costs and improve efficiency to protect borders, we continued to invest: acquiring a US location, developing negotiations in Japan, and laying the foundation for future growth.
