BC Partners invests Bain-owned Fedrigoni in $3 bln deal (updated)
26/07/2022 11:32
(Adds details)
MILAN, July 26 (Reuters) - Bain Capital Private Equity has
reached an accord with rival investment firm BC Partners for
joint ownership of Italy's Fedrigoni in a deal that valued the
paper manufacturer at 3 billion euros ($3 billion), the
companies said on Tuesday.
Bain Capital acquired Fedrigoni in 2017. Since then, the
maker of self-adhesive labels and fibre-based packaging products
has more than doubled adjusted sales and nearly tripled adjusted
core profits.
"This new partnership will support Fedrigoni's management
team as they look to build on their successful track-record of
M&A," the joint statement said.
BC Partners has overseen more than 400 add-on transactions
over the last decade carried out by companies in its portfolio.
Under Bain's ownership, Fedrigoni has diversified its
portfolio and expanded geographically, working with customers to
help their plastic-to-paper transition while investing in
research on increasingly sustainable materials.
BC Partners is also focused on sustainability-driven growth
in packaging and in February last year it invested in
Bologna-based IMA Group, the world leader in the production of
automatic
packaging machines.
"BC Partners has long viewed Fedrigoni as a leader in this
attractive and resilient end market, addressing the need for
greater sustainability in packaging," it said.
The Fedrigoni family will remain invested in the business as
will the entire management team.
The transaction is expected to close by the end of 2022 and
will lead to Fedrigoni's existing senior debt being refinanced.
Bain Capital and Fedrigoni were advised by Rothschild and
Morgan Stanley, while Nomura and Canson Capital Partners acted a
lead financial advisers to BC Partners, working together with
JPMorgan.
Nomura said in a separate statement that it had issued a
bond to provide financing for the transaction.
Canson said it would co-invest in the transaction through
its merchant banking arm, acquiring a minority stake in
Fedrigoni alongside BC Partners and Bain Capital.
($1 = 0.9794 euros)
(Reporting by Valentina Za; Editing by Kirsten Donovan and
Keith Weir)
((valentina.za@thomsonreuters.com; +39 02 6612 9526;))