Arcadia sells H-old via trade sale

The GP sold its 100% stake in the business to the trade buyer via an auction process.

According to a source familiar with the situation, the financial adviser Alantra – formerly known as N+1 – led the bidding process, which saw several international corporates participating.

Following the transaction, the company's CEO, Marco Toscano, will maintain his role and retain a minority stake in the business.

The transaction marked the first divestment for the GP's maiden vehicle, Arcadia Small Cap. Launched in January 2011, the fund reached a final close on €53m and is fully invested. It raised capital from several institutional LPs, including the European Investment Fund (EIF) and Intesa Sanpaolo's investment company Equiter, as well as pension funds and family offices.

Arcadia is currently raising capital for its second vehicle, Arcadia Small Cap II. Launched in September 2016, the vehicle has a €100m target with a €125m hard-cap. The GP is eyeing a first close for the fund during the first months of 2017, unquote" understands.

According to a statement, the fund will follow the same investment strategy as its predecessor, which targets Italian SMEs generating revenues ranging between €10-50m and with a headcount of up to 250.

Previous funding
In January 2015, Arcadia wholly acquired the business via an all-equity deal from the founding D'Aprile family. During its ownership, the GP changed the structure of the company, transitioning it from a family-driven business to a management-led company. It also increased H-old's production capabilities and expanded its headcount from 51 people to 72.

Company
Established in 1982, H-old is headquartered in Biandrate, near Novara, and produces adhesive tapes for the industrial sector, including segments such as electronics, transportation and building.

In 2015, the business posted €25m in revenues and €3.9m in EBITDA, while in 2016 it expects to generate €4.5m in EBITDA, says the source. Currently, the company generates 80% of its revenues from international sales.

People
Arcadia – Simone Arnaboldi (co-founder, CEO); Guido Belli (co-founder, chiar).

Advisers
Vendor – Alantra (corporate finance); NCTM (legal).

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• Topics
• Exits
• Industrials
• Southern Europe
• Trade sale
• Italy