Investindustrial will buy a majority stake in the capital of Italian high-end lighting designer company Flos. Founded in Merano in the Sixities by Dino Gavina and Cesare Cassina, the company is today owned by the Gandini family (73.33%) and by the Rodriquez family (26.77%) (see a previous post by BeBeez).
Investindustrial announced yesterday the signing of the agreement with current shareholders (download here the press release) and said that the fund will invest through the newco Padme srl. Investindustrial won’t subscribe any capital increase but will instead buy an 80% stake from the founders, MF-Milano Finanza writes today. Moreover also Federico Martínez Weber, ceo of Flos’s Spanish subsidiary Antares Iluminación (FlosArchitectural) will be a shareholder. The operation is expected to close in the fourth quarter of 2014.
Flos reached 153.7 million euros in consolidated revenues in 2013 (from 152.4 in 2012) of which 14.9% in Italy, 49.4% in the rest of Europe and 35.7% in the rest of the World. The group reached an ebitda of 36.6 millions (from 31.9 millions) and has a positive financial position of 23 millions (up from 5.6 miillions). This year revenues are seen in line with 2013 with an ebitda of 40 millions. The value of the deal has not been revead but the enterprise value of the group should be about 9-10x the 2014 ebitda or 360-400 milion euros, MF-Milano Finanza writes today.
Through its architectural hub based in Spain, Flos is supporting fast-moving retail brands, hospitality clients, corporate clients as well as arts and cultures institutes in developing their lighting concepts around the world. Investindustrial will support Flos in the continuation of its industrial and global expansion, through organic growth and selective add-on acquisitions.
Piero Gandini, the majority owner and entrepreneur-chief executive who successfully expanded the business internationally over the last 20 years, will continue as ceo of the group. Key managers Federico Martínez Weber and Manuel Perani will maintain their current roles as ceo of Flos Architectural and executive vice president operations and finance of Flos, respectively, and will join the Board of Directors of the Group.
Flos was advised by JP. Morgan (financial advisor) and by Studio Legale Pavesi Gitti Verzoni (legal advisor). InvestIndustrial was advised by Lazard and UniCredit (m&a), the latter also acting as mandated lead arranger and bookrunner for the acquisition financing, Lombardi-Molinari-Segni and Associati (legal), Chiomenti (structuring), Bain & Co (business and market due diligence) and PWC (financial due diligence).