Quadrivio purchases 70% stake in Farmol for €20.5m

Quadrivio bought the stake from the owning Innocenti family, which will retain 30%. The GP invested via its third vehicle, Quadrivio Private Equity Fund 3, in a deal understood to value the company at 6x the EBITDA posted in 2015.

According to a statement, the company aims to use the capital to boost its expansion through the opening of a new production plant in Slovakia.

The deal marks the second transaction for the GP's 2015-vintage vehicle, following the acquisition of printed circuit board producer Somacis Group for €100m in February 2016.

Previous funding
In April 2012, government-backed private equity house Fondo Italiano d'Investimento (FII) acquired a minority stake in the business for €11.25m. The investment included a capital injection and a convertible loan.

At the end of 2013, following relevant changes in the company's macroeconomic backdrop, FII sold its stake to the existing shareholders and issued a €3m convertible loan. More recently, FII sold its convertible note for €5.8m in April 2016.

Company
Established in 1946 and headquartered in Bergamo, Farmol manufactures aerosol- and liquid-based products, focusing on cosmetics, detergents and medical-surgical devices.

To date, the company has four manufacturing sites, two in Italy, one in Hungary and one in Tunisia. Farmol reportedly posted a turnover of €69m in 2015, with €5.5m in EBITDA and €2.5m net debt. The business generates 75% of its revenues from exports, it said in a statement.

People
Quadrivio – Alessandro Binello (chair); Walter Ricciotti (CEO).
Farmol – Carlo Innocenti (CEO).

Advisers
Equity – Legance Studio Legale Associato (legal); Schoenherr (legal); EY (commercial due diligence); Studio Russo De Rosa Associati (tax).
Vendor – Deloitte (financial due diligence); Studio Cesare Vecchio (legal).

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