Italy’s space propulsion company Avio will list on the Italian Stock Exchange through a business combination with the Spac (Special purpose acquisition company) Space 2 which has been promoted by Sergio Erede, Gianni Mion, Roberto Italia, Carlo Pagliani, Edoardo Subert, Alfredo Ambrosio and Elisabetta De Bernardi. The announcement will be delivered today, MF-Milano Finanza writes after having anticipated the deal last October 5th (see here a previous post by BeBeez).
Actual Avio’s shareholders are Avio’s shareholders are the private equity firm Cinven with an 81% stake, Italy’s aerospace group Leonardo-Finmeccanica with 14% and the managers led by ceo Giulio Ranzo.
Space2 had raised 300 million euros from investors in July 2015 and since then has been listed on the Italian Stock Exchange (see here a previous post by BeBeez). Space2 is the second Spac promoted (through Space holding) by the same management team who had promoted Space in 2013, the Spac that last June announced the business combination with Fila, a leading manufacturer of pencils and writing products.
Space 2 will invest in Avio half of its assets or 154 million euros, of which 60 millions at least in a capital increase in order to own more than two thirds of Avio’s shareholders capital. On the other side, Leonardo will own a 25-28% stake, while the managers will retain a 4%, MF Milano Finanza writes todayadding that Avio has been valued around 230 million euros or 6.5x FY 2015 ebitda which was 35.5 million euros after about 260 millions of revenues.
As for Cinven, the private equity firm will divest from Avio after having been a shareholder for ten years, Actually Cinven had invested in Avio in 2006 acquiring the controlling stake from Carlyle with Finmeccanica as co-investor. Avio used to be quite a complex group at that time as it was also active in the aeronautic sector. Avio’s aeronautic activies were then sold to General Electric in December 2012 for a 3.3 billion euros enterprise value, including 1.44 billions in net financial debt.
Cinven had bought its stake in Avio in 2006 on the basis of 2.57 billion euros of enterprise value, including 950 millions of net financial debt, or about 12x FY 2006 ebitda of 220 million euros after 1.4 billions in revenues. That meaning that in 6 years the equity value soared by 240 million euros. Finmeccanica said then that selling its stake at that price had allowed it to cash in 2x the invested capital in 2006.
Advisors for this new deal are Bonelli Erede law firm and Leonardo & co (Space2 ); Mediobanca , Bnp Paribas , Gianni Origoni Grippo Cappelli & Partners law firm (Leonardo), Chiomenti law firm (Cinven) and Grimaldi law firm (manager).
As for Space 2, it will use the remaining 154 million euros raised in ipo from investors to finance a new investment veichle, Space 3, which will target a new investment.
