This week also, Italian private equity firms have been active on the domestic and foreign markets and allied with private debt funds for closing deals.
Alto Partners acquired 70% of Millefili, an Italian producer of luxury fabrics based in Carpi. Daniele Selleri, an Italian entrepreneur took a 5% stake, while Gabriele Galli, the son of the company’s founder Francesco, both 25% of the business and became chief executive officer (see here a previous post by BeBeez). Millefili generates abroad 60% of its revenues worth 61.5 million. Alto Partners, which is fundraising after having announced a 152 million closing last year in October, acquired Italian cosmetics company Tricobiotos in June 2017. Alto Capital portfolio includes food companies Pastificio di Chiavenna, La Suissa, Artebianca, and Semenzato; Virosac, a producer of shoppers, IPE, a producer of luxury furniture, Harbor, a manufacturer of cosmetic products, Legami, a stationery business.
Aksìa Group acquired 94% of CRM, an Italian producer of wrap bred selling its products with its own brand or with white label agreements with supermarket chains, with Equita Private Debt fund joining the deal with a 6% of equity investment and the subscription of a PKI bond (see here a previous post by BeBeez). The seller was the Montagnani family. Banca Ifis financed the deal with a senior loan facility equal to a 40% of the enterprise value. Last year CRM generated revenues in the region of 20 million with a 20% ebitda margin.
Certina Holding, a German turnaround firm, tabled a binding bid for Demm, an Italian producer of components for automotive and agricultural and industrial machinery (see here a previous post by BeBeez). Umberto Tombari, the commissioner in charge of managing the company, the Italian Ministry for economic development and the company’s creditors will decide within two weeks whether such offer is acceptable. In 2015 Certina acquired from troubled Gruppo Guzzini 80% of high-end bathroom furniture producer Teuco, in which Fimag owns 20%. In 2010, Certina acquired Domino, an Italian producer of bathtub and hydromassage systems, from Sanitec.
Milan listed financial firm M&C spa sold to CCL Industries the US activities of German producer of polypropylene films Treofan Holdings (see here a previous post by BeBeez). The parties will close the transaction in 2Q18. Treofan Americas expects to generate an adjusted ebitda worth in the region of 31 million of US dollarS (30 million in 2016). CLL will pay for the asset 200 million on the ground of a valuation debt and cash free. However such price is worth to review in light of Treofan Americas performance in terms of working capital and cash generation. The buyer will pay for Treofan’s investment costs as well as for the 51 million liabilities for the construction of new production plants. M&C gained control of Treofan last year, after having acquired 23.49% of the business from ELQ Investors, a vehicle of Goldman Sachs and 22.63% from Merced Partners Limited Partnership and Merced Partners. ELQ and Merced took control of Treofan in 2009 after having converted in equity a high yield bond worth 170 million of euros. Last year M&C launched a capital increase of 30.55 million of euros, of which Treofan’s further shareholders PER spa and Compagnie Financiere La Luxembourgeoise sa will subscribe 25 million. In the meantime, Treofan refinanced its debt in July. However, in the last 9 months market conditions changed and negatively affected the company’s performance. Further to the disposals of its US assets and to a strategic focus on the European market, Treofan reached an agreement with Deutsche Bank and other lenders to review financing agreements.
Eisvogel Group, a Zurich-based private equity, took control of Prisma Group, an Italian producer of items for industrial automation (se here a previous post by BeBeez). Gian Luca Pellegrini, the company’s founder, will keep its role as chief executive officer. Last year Prisma generated sales of 20 million of euros and might achieve 25 million this year with an ebitda of above 5 million. Eisvogel will help Prisma to develop its production capabilities and R&D, as well as scaling the business internationally and implementing a buy & build strategy. Deutsche Bank and Iccrea BancaImpresa acted as joint mandated lead arranger and subscribed the debt financing in support of Prisma’s current and future needs. Eisvogel typically invests 10-40 million of euros in equity per acquiring companies with an ebitda of between 3-15 million.
Nutkao, the Italian food company that belongs to the Braida family, hired Milan’s Vitale&Co to sell a majority stake to a financial investor and solve generational issues (see here a previous post by BeBeez). Nutkao sold a stake to Italian private equity Consilium and acquired it back in 2011. The company belongs to Giuseppe Braida (32.61%), his wife Anna Mosso (32.5%) and their three kids Davide (13.67%), Barbara (10.69%), and Monica (10.53%). Last year the company had sales of 130 million of euros and an ebitda of 15 million. This year the company expects to generate an ebitda of 18 million of euros and market rumours say that Nutkao’s enterprise value could be of above 200 million, as same sector companies have cashed in 12Xebitda. Investindustrial, Permira, Bc Partners, and Hig Capital, are reportedly analysing the dossier, while Tamburi Investment Partners and Carlyle are not interested in the asset.
Andrea Battista, former ceo of insurance company Eurovita, is working on the launch of a Special Purpose Acquisition Company (Spac) with a focus on the insurance industry (see here a previous post by BeBeez). According to market rumours, Rome based Aim-listed insurance company Net Insurance that belongs to the Amato family and has a market capitalization of 37.4 million of euros. Battista was Eurovita’s ceo when it was the first insurance company in Italy to be acquired by a private equity firm which was JC Flowers. The manager left the company when it was acquired last year by another private equity firm, Cinven, and integrated with other two Italian insurance companies of Cinven’s portfolio (Old Mutual Wealth Italy and Gruppo Ergo). The new entity has been renamed Eurovita and is now led by ceo Erik Stattin.
Orienta Partners arranged a club of entrepreneurs and investors that acquired Fratelli Bassini (FB), an Italian producer of backery products through SPV Romagnapan (see here a previous post by BeBeez). French Indigo Capital, a provider of mezzanine and quasi-equity financing, supported the buyers. Last year FB posted sales of 11 million of euros with an above 2 million ebitda. Augusto Balestra, Fabio Fabbri, Mario Gardini and Sergio Serra are part of this club deal. Last year in July Orienta Partners and Indigo Capital acquired Sidac, an Italian packaging company.
Style Capital sgr (former DGPA sgr) the Italian private equity firm that Roberta Benaglia heads, is said to be interested in acquiring French fashion firm Carven (see here a previous post by BeBeez). The asset belongs since 2016 to Asian sponsor Bluebell. Benaglia, which acquired Dgpa in 2015 and changed its name, is also said to be interested in Stella McCartney, the British fashion firm that, according to rumours, Kering may sell. Style Capital just acquired 32% of Msgm, an Italian fashion company that also belongs to Manifattura Paoloni (49%) and to Massimo Giorgetti (19%). Last year Msgm generated sales in the region of 50 million of euros after having posted average yearly growth of 15% and an ebitda margin of 18%. This year the company expects sales of above 60 million, while for the next three years it aims to open 30 monobrand stores in Italy and abroad.
