Here is the roundup of Italian private equity deals announced and reported between the 23rd of February and the 1st of March
The Board of Directors of listed Italian telecom TIM accepted the offer of F2i and Rai Way to purchase Persidera (see here a previous post by BeBeez). However, the board didn’t rule out of the race for the asset I Squared Capital, an US infrastructure fund, who delivered an 11th hour non-binding offer on the 23rd of February, Friday, for the Italian provider of services for digital TV, that belongs to Telecom Italia (70%) and Gedi Group (30%). TIM’s BoD actually granted TIM’s ceo, Amos Genish, the power to finalize the deal and to consider eventual further bids. Market rumours said that F2i and RaiWay made an offer of 200-250 million of euros despite the vendors set a price of 350 million of euros. F2i sgr’s ceo Renato Ravanelli did not comment about the asset’s price but explained that “the bid [of F2i and Raiway] includes earn-out figures and further bonuses that may match vendors expectations”. However, vendors would not receive the whole figure right at the closing date, while I Squared Capital is said to be ready to pay 290-300 million euros upfront. This sale is a priority for French listed TMT giant Vivendi, the major shareholder of Telecom. Infact, the European competition authority set it as a condition for allowing the French blue chip to raise its holding in Telecom Italia. Persidera posted revenues of 80.8 million of euros in 2016, while the ebitda and net financial debt were respectively of 46.2 million and of 48.8 million of euros. A report of Mediobanca about the TMT sector said that the company’s enterprise value is of 375 million of euros.
Shareholders’ meeting of listed Italian special purpose acquisition vehicle Spac approved the proposed merger with Industrie Chimiche Forestali (ICF), an Italian producer of glue for industrial use (see here a previous post by BeBeez). ICF could list on AIM 90% of its equity while EPS will change its name with ICF Group. EPS will spin off the assets of Spac EPS2, as it will invest only a part of its 150 million of euros of equity for the acquistion of ICF. Guido Cami, the ceo of ICF, will join EPS board as well as further three independent members. EPS will buy for 69 million of euros the entire capital of ICF from private equity firms Progressio sgr, Mandarin Capital Partners, and Private Equity Partners sgr (PEP). PEP, Cami, and further 11 managers of ICF, will reinvest in the company which has sales of 72.9 million of euros (70.7 million in 2016), an ebitda of 9 million (10.7) and adjusted net profits of 4.4 million. ICF aims to carry on international acquisitions. Equita Group, Private Equity Partners spa (Pep), Fabio Sattin (chairman of PEP), Giovanni Campolo (ceo of PEP), Stefano Lustig (head of Equita’s Alternative asset management division) and Rossano Rufini (head of private equity division of Equita sim) launched EPS Equita PEP.
Fila Fabbrica Italiana Lapis ed Affini, the listed Italian producer of pencils, is of interest to London based private equity Blue Skye (see here a previous post by BeBeez). The firm tabled a bid of 150 million of euros for the majority of a 20.15% stake in the business that belongs to Simona Candela, the sister of Massimo Candela, the company’s majority shareholder and ceo. In 3Q17, Fila posted sales of 391.5 million of euros di ricavi (+26.6% yoy), an ebitda of 68 million (+23.2%) net profits of 27.5 milioni (27.3 milioni), net debt of 276.5 million (223,4 million). Blue Skye in Italy invested in the fashion brand John Richemond, Grand Hotel Bauer of Venice and in luxury restaurant chain Cipriani Group (the owner of Harry’s Bar). Blue Skye also joined Elliott for financing the acquisition of AC Milan.
Andy Palmer, ceo of Aston Martin, confermed that the company might launch an ipo as it started to generate profits again (see here a previous post by BeBeez). Italian private equity Investindustrial owns 37.5% (and 50% of voting rights) of Aston Martin, an English producer of luxury cars featured in all James Bond movies, belongs to. The company hired Lazard to carry on a dual track ipo, a listing may take place in 3Q18. In 2017 Aston Martin posted gross profits of 87 million of British Pounds (loss of 163 million in 2016), 876 millioni in sales (+48%), and an adjusted ebitda of 207 million (more than doubled yoy). This year the company generated financials that are better than what Mark Wilson, executive vice chairman and cfo of Aston Martin, forecasted at the end of 2017 said that the company would have generated sales of 840 million with an ebitda of 180 million. The enterprise value could be of up to 2.7 billion of pounds or 15 times the ebitda. Prior the ipo Investindustrial could increase its stake to 50% of Aston Martin, buying 5% of Mercedes, 3% from managers and 4.5% from Kuwait’s Adeem Investments, that currently holds 54.5% of the company. Investindustrial acquired its stake in Aston Martin on the ground of an enterprise value of 740 million of pounds.
VEI 1, the Italian Spac that Italy’s financial firm Palladio Finanziaria Holding launched, listed a few days ago on Aim Italia, after having raised 100 million of euros (see here a previous post by BeBeez). Palladio Holding provided 20% of the capital. VEI 1 is looking to merge with an Italian company worth an equity value of between 100 and 400 million of euros. Giorgio Drago, ceo of VEI Capital (a private equity fund of Palladio), said that VEI 1 could merge with one of the companies that are part of the portfolio of his firm. Banca Akros assisted VEI 1 as global coordinator, Nomad and specialist.
Time for Ticket srl acquired from Palladio Finanziaria Holding 10.86% of Best Union Company‘s listed equity (see here a previous post by BeBeez). Best Union is an Italian platform for selling tickets and managing events. Thanks to this deal Time for Ticket and its parent holding Ticket Holding sarl (which in turns is controlled by Bravo Capital Partners and Best Union’s managers) raised their stake in Best Union to 95%. Time for Ticket will launch then a public offer for the remaining publicly traded shares and delist the company.
Attilio Arietti (the founder and chairman of Oaklins Arietti) and Giovanni Cavallini (former Interpump’s ceo), listed the Spac Dutch Star Companies One (DSCO) on Amsterdam’s Euronext after having raised 55.36 million of euros and priced shares at 10 euros each plus a free warrant every two shares (see here a previous post by BeBeez). Those investors that will not sell after the merger with a target, which is due to take place in 24 months, will receive a further free warrant. DSCO will look for companies, preferably Dutch, with an ebitda of between 25 and 75 million of euros active in the fields of agrifood, maritime, logistics, big distribution, smart manufacturing.
Apollo Global Management aims to invest through Apollo Delos 300 million of euros in credits to Italian mid-market companies which are in distress or in default (see here a previous post by BeBeez). Apollo has 150 billion of dollars under management in corporate credits with a good stake invested in European companies. Apeiron Management is acting as exclusive advisor to Apollo for selecting Italian opportunities. Apeiron belongs to its Italian founding partners. Alessandro Fracanzani is the ceo of Apeiron and a former Credit Suisse banker that assisted Apollo for the acquisition of debt of Hotel Danieli in Venice. Apollo will invest only in corporate credit or in a mix of debt and equity with investment tickets between 5 and 50 million of euros. However, the firm doesn’t rule out bigger transactions. Apollo Global Management invested recently in Special Opportunities I, a fund of Dea Capital Real Estate that will target secured gross NPLs worth between 50 and 100 million of euros.
Palladio Finanziaria Holding (PFH) acquired 75% of Gruppo Uni Gasket for 30 million of euros (see here a previous post by BeBeez). Uni Gasket produces rubber components for the sectors of automotive, coffee machines, house appliances, oleodynamics and construction. Danilo and Vittorio Calissi sold their stake to PFH. Vittorio will be chairman and chief executive of GUG and reinvested the proceeds of his sale to buy 25% of the company. In 2017 Uni Gasket posted 50 million of euros, an ebitda of above 8 million and a flat net financial debt. Uni Gasket will finance eventual acquisitions with capital increases, acquisition financing or shares swap. This is the second closing for PFH that last year acquired together with Amundi Private Equity Funds 30% of RCF Group, a producer of systems for public voicing. PFH has still 50 million of euros available for private equity investments, said managing partner Sergio Ravagli.
Arcadia Small Cap II, a fund of Arcadia sgr, announced the acquisition of Chiorino Technology, an Italian producer of materials for the luxury leather industry (see here a previous post by BeBeez). Arcadia has raised 63 million of euros of committed limited partnerships for its ne fund which include the European Investment Fund among its investors. Arcadia acquired Chiorino without leverage. The company has revenues of 30 million of euros, ebitda of 2.8 million, and net financial debts of 3.2 million. Marco Toscano is Chiorino’s ceo. Paolo Opromolla, business partner of Arcadia sgr, will chair the company. Anna Perotto, which is already in charge of developing Chiorino’s portfolio of products, will be part of the company’s board.
