Argos could revisit Fabbri Vignola sale in 12-18 months

The sponsor will now focus on making the most of an ongoing process of value creation for the company, following what it deemed to be unsatisfactory offers received for the business in a sale process launched in May, the sources said.

Fabbri Vignola attracted the interest of several financial sponsors in the auction run by Lazard and DC Advisory. In August, Argos selected three parties to attend management presentations, namely Gilde Buy Out Partners, Peninsula and an unnamed industry player, as reported by Mergermarket.

The company's recent good performance has been spurred by increased market demand for its compostable food packaging film that replaces plastics, according to one of the sources.

The packaging sector is currently seeing positive momentum and is likely to witness several consolidation opportunities, the same source said, pointing to the ongoing sale of Carton Pack, the Italian maker of packaging for the food industry, launched by private equity firm 21 Invest last month.

Private equity firm Argos Wityu acquired Fabbri Vignola from US buyout firm Lincolnshire Management and Italy's Igi in October 2017. At the time, Fabbri Vignola had an estimated EUR 98m turnover and EUR 15.8m EBITDA.

Argos Wityu, Lazard, DC and Fabbri Vignola declined to comment.

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