Progressio, Idea Capital reap €130m in Italchimici trade sale

According to a statement, the all-equity deal saw the company valued at €130m. As part of the deal, Progressio sold its 71.9% stake in the business, while Idea Capital exited its 26.8% stake. Italchimici's management team also sold its 1.3% stake in the business. Investors reaped a 3x money multiple.

According to a source familiar with the situation, the GPs received several acquisition offers from larger corporates a few months after the acquisition of Italchimici in 2015. Subsequently, the shareholders initiated an off-market purchase process with two industrials, with Recordati winning the final bid.

Speaking to unquote", the source said Progressio's 2009-vintage vehicle, Progressio Investimenti II, has now invested 80% of its committed capital and the GP plans to make one final investment this year. Moreover, the private equity manager is eyeing the launch of its third fund, Progressio Investimenti III, which will have the same strategy as its predecessors.

Previous funding
Italian GPs Progressio and Idea Capital backed the company's MBO in July 2015. Progressio acquired a majority stake in the business through its Progressio Investimenti II fund, while Idea Capital acquired a minority stake with its vehicle Idea Efficienza Energetica e Sviluppo Sostenibile.

Company
Founded in 1960 and headquartered in Milan, Italchimici produces drugs and medical devices for the pharmaceutical sector. Its flagship products include Reuflor, Peridon and Aircort and focus on the gastroenterology and respiratory diseases segments.

The business generated €46m of revenues and €11m of EBITDA in 2015.

People
Progressio – Filippo Gaggini (CEO); Alessandro Petraccia (investment manager); Beatrice Capretti (associate).
Idea Capital Funds – Sergio Buonanno (managing director).
Italchimici – Riccardo Zagaria (CEO).
Recordati – Giovanni Recordati (chair, CEO).

Advisers
Equity – Lombardi Molinari & Associati (legal).
Buyer – Studio Bonelli Erede e Pappalardo (legal).

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• Topics
• Exits
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• Southern Europe
• Italy
• Progressio SGR
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• Trade sale