Alto makes 2x on Monviso SBO

PM & Partners closed its second fund on €340m in 2009. The vehicle typically invests €20-50m per deal, focusing on businesses with revenues in the €50-200m range.

Alto reaped a 2x gross cash return on its investment in Monviso – the GP originally bought the business in 2008. This is the second divestment for the Alto Capital II fund – which closed on €165m in 2007 – following the sale of fashion group Gruppo Arcte in 2007.

Previous funding
Alto acquired an 89% stake in Monviso from private equity fund 3i in 2008. The balance was held by management, led by CEO Massimo Chinarelli, as well as shareholders Franco Gribaldi and Franco Vitale. The proprietary deal took two months to complete and was Alto Capital II's sixth investment.

The deal was supported by a senior finance package provided by Interbanca and a mezzanine tranche provided by AF Mezzanine. The debt to equity ratio was 1.5:1.

Net revenue increased from €23 in 2008 (on gross revenues of €30m) to €26m in 2011, while the company's EBITDA margin rose from 22% to 25%.

Company
Established in 1936, Monviso is a producer of hand-made food for children and diabetics. The company notably produces bread substitutes such as rusks, breadsticks, low-sodium products, biscuits and croutons through the Panmonviso brand. Monviso also produces a complete line of gluten-free products.

The business operates through three dedicated manufacturing facilities and employs more than 110 people.

People
Stefano Scarpis, Mario Visioni and Alice Barberini represented Alto on the deal.

Advisers
Vendor – Studio Lombardi Molinari e Associati, Marinella Ciaccio, Laura Fiordelisi (Legal); Vitale e Associati, Alberto Gennarini, Mariacristina Moro (Corporate finance).

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