Also this week Italian private equity investors had a remarkable activity in terms of deals, the launch of new initiatives, and shopping therapy of portfolio companies.
Buyout giant BCPartners is assessing an exit for Cigierre, the Italian group that owns restuarant chains Old Wild West, Cantina Mariachi, Arabian Kebab, Wiener Haus, Shi’s, Kukkuma Cafè, America Graffiti, and Pizzikotto (see here a previous post by BeBeez). However, Cigierre is also competing for the acquisition of Sebeto, the owner of Italian food chains Rossopomodoro, Anema&Cozze, Rossosapore, and Ham Holy Burger. This asset belongs to pe firms Change Capital and Quadrivio and attracted interest also of financial investor OPCapita. However, press reports said that Cigierre’s owners are also considering a dual track IPO for the asset that acquired in 2015 for an enterprise value of 310 million of euros. In the last two years Cigierre acquired food chains America Graffiti and Pizzikotto. In 2016 the company generated sales of 330 million of euros.
Gruppo Servizi Associati (Gsa), a firefighting services company that belongs to Italian private equity Armònia sgr, is mulling to buy Babcock International‘s Italian assets (former Avincis) consisting in helicopter rescue and firefighting service (see here a previous post by BeBeez). Gsa reached 70 million euros in revenues in 2017, up from 60.9 million in 2016 when it posted 9.9 million euros in ebitda. The company is now targeting also Spain, France and Switzerland’s markets. Investindustrial (50.1%) and Kkr (49.9%) sold helicopter rescue services group Avincis (fka Inaer Aviation) to Babcock International Group in March 2014 for an enterprise value of 1.1 billion pounds. Investindustrial and Kkr merged Avinci with Italy’s Elilario, Elidolomiti and Helitalia, Spain’s Inaer, UK’s Bond, Australia’s Australian Helicoptersand, and Sweden’s Norsk Helikopterservice. Armonia sgr is going on with its first fundraising that has now reached 235 million euros in commitments ahead of a target of 300 million euros that will close next July. This is far below the original 700 million euros target. Alessandro Grimaldi, ceo of Armònia, explained that this was due to the fact that Italian institutional investors already committed to subscribe Atlante 1 and 2 funds for rescuing italy’s distressed banks and subscribing Npls. For this reason, investors had just small room left for other private equity commitments. Luca Rovati, Sigieri Diaz della Vittoria Pallavicini, Grimaldi (former senior partner and co-founder of Clessidra sgr), Francesco Chiappetta (Marco Tronchetti Provera’s trusted lawyer), and Fabrizio Di Amato (chairman and ceo of Maire Tecnimont) founded Armonia.
Quaestio Capital sgr is about to buy a 26.6% stake of Industrie Saleri Italo (SI) spa, an Italian developer and producer of cooling systems for hybrid, electric, and combustion engines for automotive. The target company will launch a capital increase of 23 million of euros. Questio will subscribe 15 million through the Italian Growth Fund, and the Saleri Family will invest 8 million. This transaction is meant to support the external growth and internationalization ahead of the launch of an IPO within three years from now. The company has 500 workers, sales of above 160 million, with an over 16 million ebitda. Italian Growth Fund, born in June 2015, can invest up to 25% of its own resources in private companies aiming to grow and list in the mid-term. talian Growth Fund has 20% of Sabaf, il 9.94% of Tecnoinvestimenti, 4.22% of Fila, 9% of Openjobmetis, 7.16% di Bomi, and 1.08% of Aquafil. (see here a previous post by BeBeez).
Imprima spa, a company active in the sector of printing for fabrics that belong to Italian private equity Wise, announced to have acquired US-based peers City Prints and Premier Fabrics (see here a previous post by BeBeez). In the last 12 months, Imprima acquired Italian firms Guarisco, B-Blossom Società Europa Tessile (SET), and German counterpart KBC. The buyer has revenues of 160 million of euros. City Prints e Premier Fabrics, respectively based in New York and Los Angeles, generate consolidated sales of 23 million of US dollars and are suppliers to US retailers and fashion companies like Amazon, Walmart, Target. Macy’s, Ralph Lauren, Calvin Klein, and Tommy Hilfinger. Jason e Ryan Borg brothers, founders of City Prints and  Premier Fabrics, will keep their management positions in the companies and become shareholders of Imprima.
Banca d’Italia and Consob, the Italian central bank and stock market regulator, authorised Fenera & Partners sgr (FP), to start its activities as alternative asset manager (see here a previous post by BeBeez). Giacomo Stratta and Pietro Mazza Midana founded the company that raised resources from wealthy families and companies based in the nordic Italian regions of Piedmont and Emilia through Fenera Holding. Banca Sella Holding and Banca Patrimoni Sella & C also invested in FP of which Alberto Savio, will be chairman and Stratta chief executive officer. The management team will include Mazza Midana, Silvia Garino (coo), Roberto Reggiani (analisys and research), and Stefano Pera (strategico marketing and reporting). FP will soon launch a fund of private equity funds, a fund of private debt funds, and a fund of private equity real estate funds. Each of these initiatives have set a fundraising target of 50 million euros. Stratta said that Banca Sella committed for an investment of 20 million of euros and that will help FP to liaise with  high networth individual clients for raising a further 20 million of euros. Banca Sella will invest 15 million of euros in these three funds of Fenera Holding and up to 40 million euros until 2022. FP will invest in financial firms of the top percentile such as Blackstone, Tpg and Apollo, but may invest also in Italian firms showing an interesting investment approach.
Life Care Capital (LCC), an Italian Spac with a focus in the sectors of healthcare and pharma, set a target of 150 million of euros for the fundraising that will close on 27 February, while the first listing day will be March 2 (see here a previous post by BeBeez). Alessandra Gavirati, partner of private equity firm Synergo, will act as chief exectuive officer of LCC, Carlo Castellano, founder of the Italian producer of medical device Esaote, will be the chairman of the Spac. Further members of the management team will be bespoke members of the Italian financial community Jody Vender, Luigi Sala, and Alessandro Piga. Alberto Dalmasso, founder of Satispay, will be one of the independent advisors of LLC that will buy majority or minority stakes of targets worth between 150 and 500 million of equity value equity value.
Enrico Marchi, the founder of Italian financial firm Finint, is spinning off its banking activities from the industrial participations (see here a previous post by BeBeez). After having acquired Swiss Arner Bank in December 2014, Finint became a private investment bank. Marchi will control the banking activities of Finint through the vehicles Fih2 and Aprile spa. The bank, has more than 300 workers, six foreign branches and assets worth 270 billion of euros. In 2016 the firm posted a brokerage margin of 35.7 million of euros and profits of 3.94 million. The Italian central bank is overseeing the transaction that is also meant to ease the generational transfer of Marchi’s asset to his four kids that will inherit Fih1 and Fih2, two newcos. Fih1 will hold Marchi’s stake in Save, the listed Italian company that manages Venice Airport, Fih2 will control the family’s banking activitis.
