Italy’s private equity weekly roundup. News from Linkem, Atlantia, Affidea, Limacorporate, Design Holding, Fiocchi Munizioni, Lifenet Healthcare and more

On 26 April, Tuesday, the shareholders of Linkem Retail and of Tiscali gave their approval for the merger of the two tlc firms (see here a previous post by BeBeez).  Linkem spa, the parent company of Linkem Retail, will acquire a 61% of Tiscali through a shares swap after having sold Linkem Retail to Tiscali on the ground of an equity value of 103.86 million euros. Italian stock market regulator Consob must authorize the merger and allow Tiscali’s shares to trade again on Milan market.  Davide Rota is the ceo of Linkem and Renato Soru is the ceo of Tiscali.  

An hostile counter-takeover bid  for Milan-listed motorways management company Atlantia is no more coming from Global Infrastructure Partners – Brookfield Asset Management – Madrid-listed ACS, a Spanish contractor that Florentino Perez heads as the tender offer from the Benetton family and its ally Blackstone is seen to gain more and more probability of success (see here a previous post by BeBeez).  Edizione Holding (owned by the Benetton family) and Blackstone Infrastructure Partners announced they are going to launch a public offer on Atlantia at 23,74 euros per share, including the dividend of 0,74 euros. Fondazione CRT, current owner of 4.54% of Atlantia, said that it will tender its to this public offer. Atlantia has a market capitalization of more than 18.8 billion (22.79 euros per share). On the other side, Atlantia and ACS have a stake in Madrid-listed infrastructure group Abertis. According to market rumours, ACS as an alternative could now target other assets of Atlantia such as 15.5% (25% governance rights) of Paris-listed Getlink, the concession holder for the English Channel tunnel, and 50% and one shares of Abertis of which the Spanish contractor has 30% and Hochtief has 20% minus one share. Getlink has a market capitalization of 9.5 billion, therefore Atlantia’s 15.5% is worth 1.5 billion. In 2018, Atlantia, ACS and Hochtief delisted Abertis with a public offer worth in the region of 17 billion.   

Groupe Bruxelles Lambert (GBL), a French holding for long term investments, won the Goldman Sachs – led auction for acquiring the majority of Affidea from B-Flexion of Ernesto Bertarelli for one billion euros (see here a previous post by BeBeez). The target’s management will reinvest for a minority. The closing should take place in 3Q22. Affidea also attracted the reported interest of EQT (which owns Cerba Healthcare), Intermediate Capital Group (ICG), Rivean Capital (fka Gilde), CVC, AP Mollere, Biogroup, and Ardian. Affidea has sales of 431 million and an adjusted ebitda of 85 million. In July 2021, the company received a credit line of 150 million from Unicredit and Goldman Sachs for financing acquisitions.  

EQT paused the sale process for the majority stake of Limacorporate, an Italian manufacturer of orthopaedic prostheses (see here a previous post by BeBeez). In early 2020, EQT hired Morgan Stanley and Credit Suisse for appraising a dual track IPO for Limacorporate who in 3Q21 generated sales of 155.4 million euros (+9.9% yoy or 141.4 million in 3Q20), an adjusted ebitda of 46.5 million (+26.8% – 36.7 million) with a net financial debt of 327.7 million. In 2017, the company issued two Milan-listed bonds for a total of 275 million for refinancing the credit lines that received from Unicredit, Ubs and other banks that supported the buyout of EQT.

 In 2021, Design Holding, an Italian high-end design firm that belongs to Carlyle and Investindustrial and that is reportedly interested in launching an ipo generated sales of 700.3 million euros (+21.1%), an ebitda of 190.3 million (+27.7%) and an ebit of 151.8 million (+33%), and cash of 142 million (see here a previous post by BeBeez). The company also announced that it had signed an agreement for the acquisition of Denmark’s Designers Company, the owner of brands Menu and by Lassen from Polaris Private Equity who purchased the asset in 2018. By the end of 2022, Polaris expects to generate sales in the region of 850 million and an ebitda of 200 million. Lazard will assist the company for the listing process.

Fiocchi Munizioni, an Italian producer of small-calibre ammunition that belongs to Charme Capital Partners, acquired UK competitor Lyalvale Express in which Molten Ventures invested (see here a previous post by BeBeez). James Rose, the UK country manager of Fiocchi, will now head also Lyalvale. Maurizio Negro is the ceo Fiocchi. Press speculations said in October 2021, that Charme could hire Citi and Lazard for selling a 60% of the business. However, the increasing attention of investors to ESG parameters makes Fiocchi a target difficult to sell to financial buyers. The company could be of interest to iconic Italian competitor Beretta or list on NYSE through a business combination with a Spac. Fiocchi has sales of 142.5 million euros, an ebitda of 23.1 million and a net financial debt of 32.5 million. Charme acquired 60% of Fiocchi in 2017, while the Fiocchi Family kept a 40%.  

Chequers Capital is exploring options for the sale of Giovanni Bozzetto, an Italian chemical company (see here a previous post by BeBeez). Chequers acquired the asset in 2017 from Synergo on the ground of an enterprise value of 95 million euros or 7x the 2016 ebitda that was of 13.5 million while sales amounted to 120 million and the net financial debt to 16.5 million. In 2020, Bozzetto generated sales of 152.5 million, an ebitda of 21 million and a net financial debt of 45.1 million.  

Milan-listed Exor, the investment holding of the Agnelli family, committed to acquire a 45% of Lifenet Healthcare, a manager of hospitals and outpatient clinics (see here a previous post by BeBeez). Exor will invest 67 million euros for subscribing a capital increase and acquire shares of Nicola Bedin on the ground of an enterprise value of 149 million. Bedin will keep the majority of Lifenet who will not change the management team. Exor will appoint the company’s chairman. The closing may take place in 1H22. Lifenet has sales of above 100 million 

Ibla Industries II, a fund that Ibla Capital manages, acquired Seko Industries, an Italian producer of machinery for the animal farming sector, from the founder Giuseppe Loppoli and his family (see here a previous post by BeBeez). Intesa Sanpaolo financed the transaction. Seko Industries has sales of 14 million euros (80% export) and an above 10% ebitda margin.  

Italian software house Namirial, a portfolio company of Ambienta sgr acquired Italian competitor Bit4ID who also owns Spain’s Uanataca, a trust services provider (see here a previous post by BeBeez). Bit4ID is a Qualified Trust Service Provider (QTSP) and at the end of 2020 it issued a bond that was part of the fifth tranche of basket programme Garanzia Campania Bond. Cassa Depositi e Prestiti and Mediocredito Centrale subscribed the issuance. Bit4ID has sales of 12 million euros, an ebitda of little above 0.1 million and net cash of 1.7 million. Namirial has a turnover of 100 million. 

CFE Finance successfully concluded its public offer at 60 pence per share on London-listed CIP Merchant Capital, a closed-end investment company, ahead of a delisting (see here a previous post by BeBeez). CFE owns 87.31% of CIP as 37.29% of its shareholders tendered their shares. CFE previously acquired 31.8% of CIP on the ground of an enterprise value of 30 million GBP. Mario Cordoni is the founder and ceo of CFE. 

Alete Bikes, a portfolio company of Trilantic Europe, signed a binding agreement for acquiring Cicli Esperia from the founding families Zanaga and Turato who will reinvest for a minority of the company (see here a previous post by BeBeez). Cicli Esperia is a producer of bicycles and e-bikes. The company has sales of 37 million euros. In 2020, it generated sales of 34.2 million, an ebitda of 4.7 million and net cash of 0.527 million. Giulio Mengoli is the ceo of Alete, a platform that Trilantic created in 2021 for acquiring manufacturers of bikes and e-bikes. In 2021, Alete Bikes generated sales of 157 million.