Cinven’s Ergo buys Old Mutual Wealth Italy for €278m

Cinven acquired the Italian business for €278m in cash, plus interest to completion. According to local reports, the transaction followed an auction process led by Rothschild, which saw buyout houses Cinven and JC Flowers competing for the acquisition.

Prior to the transaction, the targeted company was part of listed Anglo-South African financial services provider Old Mutual Wealth, which is currently restructuring its business by focusing on its core UK and cross-border markets.

Previous funding
Cinven acquired Ergo Italia in a carve-out from German insurance group Ergo in November 2015. The transaction was financed via the GP's fifth vehicle, which closed on €5.3bn in June 2013.

Company
Old Mutual Wealth Italy – formerly known as Skandia Italia – was founded in 1997 and operates in the life insurance market.

Headquartered in Milan, the business generated €22m in revenues in 2015 and employs a staff of 110.

People
Cinven – Caspar Berendsen (partner); Eugenio Preve (principal).
Ergo Italia – Erik Stattin (CEO).
Old Mutual Wealth – Paul Feeney (CEO).

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• Topics
• Expansion
• Financials
• Southern Europe
• Italy
• Cinven
• Acquisition finance
• Build-up