Thanks to financial support from Muzinich’s Italian private debt fund, Italian mid market private equity operator Wise sgr has acquired the whole capital of Primat srl, a company based in Northern Italy closed to lake of Como (Lecco) and a leader in the research and definition of bulk protection systems intended for the coating of mechanical small part components such ad srews and bolts (download here the press release). The seller is Arner Private Equity, MF-Milano Finanza writes today.
More in detail the deal has been conducted by Wise Equity III fund and has been financed by a 15 million euros bond which was entirely subscribed by Muzinich Italian Private Debt Fund. The bond has a 7 years matyrity, pays a floating coupon, is senior secured and has Primat’s shares as collateral.
Primat reached 20.6 million euros of revenues in 2013 with 6,8 millions of ebitda and targets higher revenues this year and a quite higher ebitda. At the end of 2013 the company had a net financial debt of 6.5 millions but it has been reduced almost to zero this year so the 15 millions bond will be the only financial liability for the company.
The deal is intended to develop Primat’s growth in the next three years thanks to investments in the company’s actual business and to acquisitions of other companies active in complementary sectors.
This is the first deal for Muzinich Italian Private Debt Fund, the closed-end fund launched by Muzinich&Co to provide Italian small and medium enterprised with financing for business development (see a previous post by BeBeez).
This is instead the sixth deal for Wise Equity III fund which has a 180 million euros committement and has now been invested for more than 65%.
Wise sgr has been supported for legal issues by SimmonS&Simmons law firm, while Studio Spadacini provided accountant and fiscal support and Studio Sebastiani was a financial advisor. Muzinich&Co was advised on legal issues by Chiomenti law firm.