Italy’s private equity weekly roundup. News from PwC, Centerbridge, Farbanca, Investindustrial, Teamsystem, Berica Vita, Fondo Italiano d’Investimento and more

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Strategic investors closed 61 m&a deals out 90 in the pharmaceutical and healthcare sectors in Italy in 2019, while  private equity funds and financial investors closed 29 transactions, a report by PwC said adding that of that total 54 acquisitions were in the healthcare sector vs 35 in 2018 (see here a previous post by BeBeez). Pharma deals have been more valuable, especially when private equity funds were involved. Transactions in 2019 recorded a median multiple EV/EBITDA of 13.1 X for the pharma sector. In the healthcare field, the adjusted median value of the EV/Sales ratio amounts to 2 X. Furthermore, strategic investors pay more than financial firms (+10% for pharma and +20% for healthcare).

Centerbridge sold 17 million shares of Milan-listed Banca Farmafactoring (BFF) (see here a previous post by BeBeez). The private equity sold 10% of BFF at 5,20 euros per share or 88.4 million euros through an accelerated book-building procedure. Centerbridge kept 11.9% of BFF and signed a 60 days lockup agreement. At the closure of trading of 2 June, Tuesday, BFF share price was of 5.08 euros for a market capitalization of 907.6 million.

Banca Ifis signed an agreement for paying 32.5 million euros for a 70.77% of Farbanca from Banca Popolare di Vicenza (see here a previous post by BeBeez). Earlier in April, Banca Ifis tabled a binding bid for a 70.77% of Farbanca and paid the first instalment of 15% of the total amount. The asset attracted the reported interest of Elliott and of the Spac Prima Lending (that now is in liquidation). Small shareholders will hold 29.23% of Farbanca. Farbanca has a net profit of 4.1 million (-18.7% yoy), equity of 65.5 million (+4.6% yoy), a CET1 ratio of 15.72%.

The Italian producer of medical devices Service Med, a company that belongs to Neuberger Berman, acquired Italian medical company Medi-H-Art from Giuditta and Matteo Anna Rossetti (see here a previous post by BeBeez). Medi-H-Art has sales of 4.54 million euros, an ebitda of minus 0.225 million and net cash of 1.4 million.  In October 2015, Service Med sold a 75% to Atlante Private Equity, a fund that now Neuberger Berman manages.

Investindustrial will launch between 8 June and 1 July the announced tener offer on stocks representing up to a 22.57% stake of Milan-listed Guala Closures (see here a previous post by BeBeez). The fund will pay up to 90.996 million euros for 15,166 million shares and 20.22% voting rights. Investindustrial already acquired 4.02% of Guala on the market and 3.60% of the voting rights. Guala’s shareholder list includes Amber, Peninsula Capital (10%), Mojto Luxco 2 (5.6%) and the company’s chairman Marco Giovannini (24.2%). The company has sales of 606.5 million (543.1 million yoy), an adjusted ebitda of 113.5 million (104.5 million).

Green Arrow Capital will invest 75 million euros with its renewable energy vehicle Green Arrow Energy Fund for building 6 biomethane plans 6 and two natural gas stations for automotive (see here a previous post by BeBeez). In October 2019 GAC acquired Quercus Assets Selection, which has more renewable energy plants with a power of 300 MW, from Quercus Investment Partners. 

Gruppo Clerici, an Italian producer of furniture for bathrooms, acquired Italian competitor Prato Nobili (see here a previous post by BeBeez). The Azzurro has a turnover of above 27 million euros. Gruppo Clerici has sales of above more than 400 million and owns 16 subsidiaries. It belongs to the eponymous family.

Cherry Bay Capital  launched a club deal for investing 10 million euros in the equity and the debt of Poggipolini, an Italian producer of screws for the aerospace industry that belongs to the eponymous family (see here a previous post by BeBeez). The club deal acquired a minority of the company and subscribed a convertible bond. Poggipollini has sales of 15.1 million euros with an adjusted ebitda of 3.7 million.

Teamsystem, the Italian provider of management software for corporates and professional that belongs to Hellman&Friedman, acquired 51% of Beneficy from Gianluca Moretto (see here a previous post by BeBeez). On 29 May, Friday, Banca d’Italia authorised TeamSystem Capital at Work sgr, a new alternative asset management company, and TeamSystem Payments to start their operations. TeamSystem Capital at Work sgr belongs to TeamSystem Am Holdco (51% of TeamSystem Value Chain and 49% of Fintech Holding), Fintech Holding and  Banco Bpm and will invest in performing trade receivables through digital platforms. Fintech Holding’s controlling shareholders are Isidoro Lucciola and Riccardo Carradori. In early 2019 it sold Factor@Work and White-e to TeamSystem Financial Value Chain and reinvested for 49% of the asset. Teamsystem has sales of 417.9 million euros and an adjusted ebitda of 170.5 million with a net financial debt of 750.9 million.

London-based private equity Trilantic Capital is holding exclusive talks for acquiring Dietopack (see here a previous post by BeBeez). The fund aims to integrate the asset with its portfolio company Doppel Farmaceutici on the ground of an enterprise value of 8-10X ebitda. Ethica is handling the sale of Dietopack which has sales of 10 million euros with an ebitda of 2 million. The company equally belongs to the Cavazzuti Sisters. Doppel Farmaceutici belongs to Trilantic since October 2015 and has sales of 100 million.

Cattolica aims to sell Berica Vita, an insurer born out of a joint venture signed with Banca Popolare di Vicenza (see here a previous post by BeBeez). Cattolica has 60% of the asset which has reserves of 600 million euros. The asset attracted the interest of Cinven, that in Italy owns Eurovita group, which Cinven transformed in a life insurance platform after the acquisitions of Ergo Previdenza, Old Mutual Wealth Italy, Eurovita Assicurazioni, and Pramerica Life from Prudential Financial. Cattolica has not yet received any binding bid. In December 2019, Cattolica sold Cattolica Life (a 60%-40% jv with Banca Popolare di Vicenza) to Monument Re. Earlier in February, Cattolica acquired 40% of Abc Assicura (a 60%-40% jv) from Pop Vicenza

Sapio, an Italian producer of gases for medical and industrial, medical, and home care use, acquired the majority of Homeperf, a French competitor (see here a previous post by BeBeez). A pool of investor that Parquest Capital led sold the asset. Sapio has sales of 550 million euros.

Fondo Italiano d’Investimento (FII) launched Fondo Italiano di Minoranze per la Crescita – FIMiC with a first fundraising target of 400 million euros and a final target of 800 million (see here a previous post by BeBeez). The company will invest in minorities of Italian companies that aim to grow organically and through M&A. Cdp Equity will act as anchor investor. Targets may generate sales of 20 – 250 million.

Bomi Italia, a logistic provider for the healthcare sector whose controlling shareholder is ArchiMed, acquired Italian competitor Logifarma (see here a previous post by BeBeez). The Paradisi Family, Andrea Nardo and Roberto Pucci sold their interest in the target which has sales of 6 million euros, an ebitda of 0.609 million, and net cash of 0.814 million. Gruppo Bomi has sales of 126 million, (117.8 million yoy), an ebitda of 12.1 million (11.3 million) and net financial debt of 35.2 million  (25.5 million).