Deal in focus: Alcedo inks Pixartprinting deal

Italian GP Alcedo sold web-to-print firm Pixartprinting to Nasdaq-listed Vistaprint in early April for around €127m. After a holding period of less than three years, the exit saw Alcedo reap a return of around 6x money.

The firm was understood to have a net debt of €18m at the close of the transaction. Based on purchase price and net debt, the deal gave Pixartprinting an enterprise value equal to 9.8x its 2013 EBITDA. The agreement also included a sliding-scale earn-out of up to €10m for Pixartprinting subject to the achievement of revenue and EBITDA performance targets in 2014.

Run by Altium Capital, the transaction was born from the adviser's existing experience in the web-to-print space; the latest being TA Associates's acquisition of German printing business Onlineprinters with Altium acting as adviser to the transaction.

Alcedo makes 6x money on a deal valuing the business at €127m

"The company was growing at a faster rate than the European market. We explained that to Alcedo and they decided to appoint us for further verification," explains Carlo Dawan, managing director at Altium and head of the Milan office. "Initially, it wasn't an immediate decision for Alcedo to mandate us to explore a sale of the company. It didn't happen quickly, but after several discussions, they decided to see the reaction of the market.

On the down-low
"We contacted a limited number of parties, because we didn't want to create rumours as we weren't sure that we were going to enter into a sale process, but as there was a very positive response from the market, Alcedo and the management got excited too," says Dawan.

Despite the warm reception, Alcedo was not originally convinced that it was the right time to sell. The firm had only bought the company in December 2011, taking a 75% stake for €17m via the Alcedo III vehicle. Friuladria Crédit Agricole and Banco Popolare di Verona provided a debt package to support the deal, according to unquote" data.

However, several trade buyers expressed an interest in the asset, alongside a handful of other private equity firms with experience in the space. "Vistaprint showed material interest in the asset right from the start so we decided to give them a fast-track to come with a final price," says Dawan.

"The buyer was able to come to us with a satisfactory price, which they confirmed after the due diligence, so they proved to be very serious. It's a fantastic asset; very well-managed, with substantial growth in revenues. It was the asset they were looking for, not only because Pixartprinting is a B2B company, but Vistaprint is focused mainly on B2C, so it was a complementary asset," says Dawan.

Licence to print money
Founded in 1994 and based in the Veneto region, Pixartprinting serves around 100,000 customers. The firm's revenues originate from graphic design agencies, print resellers and local printers that ultimately serve local SMEs. The company produces flyers, brochures, decorated clothing, business cards, signs, banners, labels, textiles and other printed products. Customers are located in Italy, Spain and France. The firm reported revenues of around €56m in 2013, with EBITDA of around €15m and a headcount of 330.

The circa 6x money multiple enjoyed by Alcedo will no doubt support the GP in its next fundraising – its first in post-crisis Italy. The firm is expected to hit the fundraising road in the next two years; its most recent vehicle, Alcedo III, closed on €178m in 2008, exceeding its €150m target.

People
Alcedo – Maurizio Tiveron, Maurizio Masetti

Advisers
Equity – Altium Capital, Carlo Dawan, Tobias Schultheiss (Corporate finance); Bonelli Erede Pappalardo (Legal). 
Acquirer – Leonardo & Co (Corporate finance); Baker & McKenzie (Legal); PwC (Financial due diligence, tax).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Southern Europe
• Exits
• Support services
• Italy
• Alcedo SGR