Advent and PM buy Gruppo Argenta

Guy
30 June 2005

Tweet
Facebook
LinkedIn
Google plus
Send to

Advent International, the global private equity firm, today announced the acquisition of Gruppo Argenta, a leading Italian vending machine operator. The value of the transaction has not been disclosed. Advent will hold a 65% stake in the company. PM & Partners, an Italian private equity firm, will acquire a minority stake alongside Advent, with management holding the remaining stake.

This is the second Italian investment made by Advent in nine months and follows the acquisition in September 2004 of AVIP, Italy’s largest independent outdoor advertising group. Both illustrate Advent’s investment strategy in Italy: the acquisition of growth platform companies that can be developed into leading players in their sectors.

With a market share of 6.2% and 2005 revenues anticipated to be EUR 80m, Gruppo Argenta is among the leading players in Italy’s vending machine sector. Over the last four years the business has enjoyed a revenue growth rate of 11.4% per annum, significantly outperforming the market.

The value of the Italian vending food and drink market totalled approximately EUR 1bn in 2004. The Italian vending services industry is highly fragmented, with approximately 1500 businesses in operation and the top ten players accounting for only 28% of the market.

Argenta’s operations are focused on restaurisation services, specifically the supply of hot and cold drinks and snacks. The company currently operates almost 50,000 vending machines across Northern Italy (Emilia Romagna, Lombardia and Veneto), serving a client base predominantly comprised of small and medium sized companies, public institutions and families. It also directly manages several bars located within public administration premises.

Established in 1968, the business is still led by its founder, Mr. Epaminonda Scaltriti. The acquisition represents a step-change in Argenta’s private-equitybacked development, following the management buyout that was led by two local funds, Quadrivio SGR and San Paolo IMI Private Equity, two years ago.

The strategy over the next few years will be to accelerate Argenta’s growth through further acquisitions (four were completed in 2003/2004), increased market penetration and the development of new products and distribution channels. Whilst the primary focus of the company’s activities will be domestic, selected European expansion opportunities will also be assessed, with several neighbouring countries presenting similar consolidation opportunities.