Private equity funds activity in Italy has been hectic last week and it didn’t show any sign of repricing dynamics.
In 3Q18, the value of transactions which involved Italian companies as targets, or inbound m&a, amounts to 32.2 billion of euros (38.2 billion in 3Q17 – this figure included also transformational deal Luxottica-Essilor), according to Mergermarket data (see here a previous post by BeBeez). In the same timeframe, transactions on Italian market are worth 11.2 billion (21.8 billion). However, the value of outbound M&A went up to 40 billion (from less than 40 billion). The value of private equity deals is of 15.8 billion (8.2 billion). Such data are consistent with those that BeBeez Report highlighted for the Italian private equity and M&A activity for first 8 months of 2018.
The Trevisani Family, owner of troubled Milan-listed drilling company Trevi Finanziaria, sold Italian shipyard Cantiere del Pardo, the producer of iconic sail boats Grand Soleil (see here a previous post by BeBeez). Fabio Planamente, general manager and Gigi Servidati, sales manager, carried on a management buy-out of the company through the subscription of a 5 million of euros worth capital increase. The Trevisani Family and Andrea Amadori kept a minority of the business. The Trevisani Family acquired Cantiere del Pardo in November 2014 for 7 million from Germany’s Bavaria Yachtbau, which belonged to Anchorage Advisors and Oaktree Capital, and merged with the brand Sly Yachts. Cantieri del Pardo has sales of 23.4 million, an ebitda of 0.7 million, and net financial debt of 11.2 million which included a minibond of 0.2 million listed on ExtraMot Pro. This bond matured in September 2018 and the company refinanced it in early August with a 0.3 million loan that fintech platform Lendix provided. This was the first tranche of a 1.5 million loan that has the structure of flexible bridge, that gives the borrower the possibility to pay in advance the debt without paying commissions in the first 9 months of the issuance, also if banks refinance the liability.
KKR increased by one billion of euros its offer for FCA’s Magneti Marelli and acquired the business (see here a previous post by BeBeez). FCA said it sold Magneti Marelli for 6.2 billion. KKR will carry on such an acquisition through its Japanese portfolio company Calsonic KanseiCorp and create an automotive components producer generating sales of over 15 billion. Further reported suitors for the FCA’s asset were Bain Capital, Apollo Global Management, Cinven, and Carlyle that all tabled bids worth in the region of 5 billion.
Bahrein’s Investcorp is holding a beauty contest for selling Dainese, the Italian producer of clothing and accessories for motor, potrebbe prestocambiare di nuovo proprietario (see here a previous post by BeBeez). Rothschild, Lazard, and Mediobanca are competing for handling the sale of Investcorp’s 80% that the fund acquired in November 2014 on the ground of an enterprise value of 130 million of euros, 20% of Dainesebelongs to the founder Lino Dainese. Ardian, L-Catterton, Carlyle, Permira may express interest in the asset. Cristiano Silei, is the ceo of Dainese which has sales of 184.7 million (161.6 million in 2016 and 121 million in 2013), an ebitda of over 25 million (20.2 million in 2016). The company’s enterprise value could be of 350 million or in the region of 14X ebitda.
Star Capital acquired from the Marzioni and the Santini Family a 70% stake of denim producers International Promo Studio (Ips) and ModaItalia (see here a previous post by BeBeez). Mediocredito Italiano and Mps financed the transaction. Enrico Marzioni will be the chairman and ceo of Ips, his wife Anna Maria Barzi and his brother Massimo will be ceo and chairman of Moda Italia. The Santinis sold every interest they had in the business, while the Marzionis will keep a 30% stake. Ips has sales of 37 million of euros, while Moda Italia has revenues of 6.2 million.
Mandarin Capital is creating a cluster of Italian producers of frozen food through Italian frozen food holding (IFFH) (see here a previous post by BeBeez). IFFH already owns Appetais and AR, a joint venture that Appetais signed in 2016 with Roncandin, a producer of frozen bakedproducs. Francesco Palau , the soon-to-be chairman and ceo of IFFH, said that in 2018 the cluster will generate sales of 40 million of euros (28.5 million with Appetais and 12 million with AR), and will export 20% of its output. Furthermore, IFFH aims to acquire some other company for generating sales of 100 million and export 50% of the products. Dario Roncadin, will be in charge of IFFH business development, and Marcello Mucedero.
Rothschild and JP Morgan, the advisors that BC Partners hired for selling restaurant chain Cigierre (Compagnia Generale Ristorazione), received non-binding offers worth 700 million of euros from Carlyle, Permira, Onex, Cinven, while Apax Partners dropped the race(See here aprevious post by BeBeez). Cigierre owns the brands Old Wild West, Cantina Mariachi, Arabian Kebab, Wiener Haus, Shi’s, Kukkuma Cafè, America Graffiti, and Pizzikotto. BC Partners acquired the majority of the business in November 2015 from L Capital, Paladin Capital Partners, Camelot Holding and the founding ceo Marco Di Giusto on the ground of an enterprise value of 310 million. Cigierre has sales of 330 million, an ebitda of 33.9 million, and net financial debt of 126.8 million (29.2 million in 2015).
Lone Star hired Deutsche Bank for sounding the possibility to sell Evoca (fka N&W Global Vending), a vending machines company (see here a previous post by BeBeez). The asset’s enterprise value could be in the region of 1.5 billion of euros. Andrea Zocchi, ceo of Evoca, previously said during a BeBeez event that he was keen on an ipo. Evoca has sales of 480 million and this year acquired Quality Espresso, a Spanish producer of coffee machines for the HoreCa sector; VE Global Solutions, a Cleveland-based merchant and distributor of machines with the brand Necta, Wittenborg and SGL in the North American region. Evoca previously acquired Canadian Les Entreprises Cafection, based in Quebec City and Saeco Vending from Royal Phillips. Lone Star acquired Evoca in late 2015 from Equistone (fka Barclays Private Equity) and Investcorp, that in turn purchased the asset in 2008 from Argan Capital and Merrill Lynch Private Equity, which both the business in 2005 from Compass Partners International, the firm that in 1999 acquired Necta (fka Zanussi Vending) from Electrolux-Zanussi and merged it with Danish Wittenborg.
Swiss private equity Capvis has hired Baird for selling Italy’s swimwear producer Arena (see here a previous post by BeBeez). Capvisacquired the asset in January 2014 from The Riverside Company (95%) and chairman and ceo Cristiano Portas (5%) on the ground of an enterprise value of 200 million of euros. Riverside acquired the asset from BS Private Equity in October 2010 for an enterprise value of 100 million. Riverside invested 80 milioni of equity. BS acquired the asset from Investitori Associati in 2006 for an enterprise value of 55 million.Investitori Associati purchased Arena in January 2002 together with Portas, Patrick Chollet, the company’s international business development manager, and the France country manager Dominique Pohu. Germany’s Blb-Beteiligungsgesellschaft Gamma, part of Bayerische Bank, which in turn acquired the company between 1998 and 2000 from Mario Chesi and Werner Peemoller, who both the company from Adidas in 1991. Giuseppe Musciacchio and Luca Selvatici are the ceos of Arena that generates abroad 80% of its sales of 116 million (111 million in 2016).
Troubled Italian sparkling wine producer Zardetto Spumanti is in receivership (see here a previous post by BeBeez). The company hasattracted the interest of trade buyers. Zardetto has sales of 7 million euros. In 2016, revenues were 6.7 million in 2016 with an ebitda of 0.43 million and net financial debt of 3.7 million.
