Idea Corporate Credit Recovery I, a turnaround fund managed by Idea Capital Funds sgr and backed by Bayview (Hig Capital group), announced the acquition of a 51% stake in the capital of Sinterama spa, a European leader in the production of coloured polyester threads and yarns, born in 1968 in Biella (Italy), a town located at the foot of the Alps, where the textile culture is deeply rooted in an ancient tradition (see here the press release).
For the fund this is the forth deal in few months after acquisitions of majority stakes in Targetti Sankey, Util Industries and Cartiere Paolo Pigna. Sinterama is one out of 8 companies whose debts have been partly bought by the fund from senior lending banks one year ago when the fund was launched (see here a previous post by BeBeez).
Idea Ccr I became actually the major lender of Sinterama and was able to redefine the company’s debt structure in a way to allow cash flows to support the development of the business and the relaunch of the company.
Sinterama ha production plants in Italy, Bulgaria, Brazil and China and an R&D center in UK. Each year the company produces more than 30 tons in threads and yarns and counts 900 employees. The company reached 130 million euros in revenues in 2015, with 7 million euros in ebitda and a 50 million euros net financial debt while FY 2016’s figures are slightly better, Milano Finanza writes today.
Sinterama’s ceo Guglielmo Fiocchi has been confirmed in the role. Members of the new Board of Directors are Paolo Piana, shareholder and non executive chairman of the company, Francesco Gori (Idea Ccr I managing director), Federico Giribaldi and Paolo Gramaglia.
In the last few days Sinterama sold its 25% stake in German polyester threads and yarns Trevira Holdings to Thai Indorama Ventures, which then has acquired full controll of Trevira. Indorama and Sinterama had bought Trevira together in 2011out of a bankruptcy procedure.
In the deal Sinterama has been advised by financial advisor Leonardo & Co-Houlihan Lokey and Bonelli Erede law firm. Idea Capital Funds and the lending banks were supported by LMS law firm while Sinterama’s shareholders were supported by Orrick, Herrington & Sutcliffe law firm. Studio Tremonti, Piccardi e Associati together with PwC and RsA supervised fiscal issues. Franco Carlo Papa was the independent professional who certified the restructuring plan.