
L Catterton to kick off Pinarello sale early next year
Bicycle manufacturer Pinarello will hit the Italian auction pipeline in a process guided by Houlihan Lokey, a source close to and a source familiar with the situation said.
Its private equity owner L Catterton recently appointed the advisory firm to launch a sale process for the portfolio company in the coming months, the sources said.
The sellside adviser will distribute teasers to private equity firms and strategics between the end of January and the beginning of February, the source close said.
Pinarello will be marketed off EUR 10m 2022 EBITDA, both sources said. In the fiscal year 2021/2022 Pinarello generated EUR 84m in revenue, the source close said, adding that it operates in a niche market with strong EBITDA margins.
Under L Catterton’s tenure Pinarello has seen tremendous growth organically, on the back of a high demand for its products over the years, the source familiar said, adding that the environment pushed up the company’s value.
L Catterton decided to consider a sale after receiving inbound interest from undisclosed parties, this source also said, without further elaborating.
The sponsor’s investment in Pinarello has reached its maturity, the source close added, noting that strong liquidity in the market has also influenced the decision to sell at this time.
The transaction will entail a majority stake in the business owned by L Catterton since December 2016, while Fausto Pinarello of the founding family will continue to retain a substantial minority, the sources said.
At the time of the deal, Pinarello had revenues of EUR 52m in the 2015/16 financial year, as reported.
L Catterton was advised by Alantra for financial matters as well as in finding financing for the deal. NCTM advised L Catterton on the legal side. KPMG performed due diligence, as reported. Meanwhile, the Pinarello family was advised by Andrea Cittero and Studio Casonato. Studio Legale MRCP was the legal adviser.
Pinarello and L Catterton did not return a request for comment. Houlihan Lokey declined to comment.
Latest News
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme
Multi-family office has seen strong appetite, with investor base growing since 2016 to more than 90 family offices, Meiping Yap told Unquote
Permira to take Ergomed private for GBP 703m
Sponsor deploys Permira VIII to ride new wave of take-privates; Blackstone commits GBP 200m in financing for UK-based CRO
Partners Group to release IMs for Civica sale in mid-September
Sponsor acquired the public software group in July 2017 via the same-year vintage Partners Group Global Value 2017
Change of mind: Sponsors take to de-listing their own assets
EQT and Cinven seen as bellweather for funds to reassess options for listed assets trading underwater