Advisor Mediobanca is receiving binding offers in these days and a final decision by major shareholder Clessidra fund (owning 80.2% of the capital since 2011) and by the founding Balconi family (owning the remaining stake and supported by Linklaters law firm) is expected quite soon.
In the last few months many private equity firms showed interest in the deal with Pai Partners, Ardian, L Capital, Investcorp and BC Partners among them. However the race has been reduced to three-four players who are said to be funds managed by Capvest, Lion Capital and Chequers Capital.
The latter teamed up with Italy’s private equity firm Igi sgr for this deal, which is not a new story as the two funds already co-invested in Rollon, a leading Italian manufacturer of linear rails and actuators. in 2013 (see here the press release) and had co-invested in Valvitalia some years ago, which is among the world’s leader in the production of flow control equipment for the oil & gas and power generation and is now controlled by the founding Ruggeri family and by Fondo Strategico Italiano (see here the press release)..
Balconi is said to have an enterprise value of around 250 million euros or 9x expected 2014 ebitda which should be around 26 millions (from 15.5 millions in 2013) with 2014 revenues seen at 150 millions (from 130 millions). Mediobanca is also ready to issue a staple financing up to 40% of company’s enterprise value.