EOS IM buys 86.5% stake in Poplast

Amedeo Goria
17 November 2016

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Buyout house EOS Investment Management (EOS IM) has acquired an 86.5% stake in Italian packaging manufacturer Poplast via its maiden fund, EOS Private Equity.

According to a source familiar with the situation, existing shareholder Credem Private Equity fully exited its controlling stake, reaping a 4x money multiple, while the management team retained its minority stake.

EOS IM purchased its stake in an all-equity transaction. The company's management team will continue to lead the business, which aims to use the capital injection to expand internationally via strategic bolt-on acquisitions.

More recently, the GP launched its maiden private equity vehicle, EOS Private Equity, with a €150m target. The Luxembourg-based fund recently held a first close on €55m.

Previous finding
In December 2008, Credem acquired a 70% stake in the business for €3m via its vehicle Credem Venture Capital, which held a final close on €40m in February 2005. As part of the deal, the management team retained the remaining stake. Following the transaction, the GP's CEOs Maurizio Esposito and Daniele Molinaro, alongside investment manager Ivan Gangemi, joined the company's management board.

In 2011, the shareholders completed a capital increase in order to merge with two sister companies, A&T and Paprint. The transaction saw the companies' minority shareholder, the Italian corporate Sala, enter Poplast's shareholder base with a 5% stake, while the GP retained 66.5% and the management team 28.5%.

Company
Headquartered in Castel San Giovanni, near Piacenza, Poplast specialises in flexible packaging for the food, pharmaceutical and industrial sectors.

Founded in 1975, the company posted a turnover of €36m in 2015 with €5.2m EBITDA, according to a source. Currently, the business employs a staff of 78.

People
EOS Investment Management – Ciro Mongillo (founder, CEO); Marco Giuseppini (head of private equity).
Credem Private Equity – Maurizio Esposito, Daniele Molinaro (CEOs); Ivan Gangemi (investment manager).
Poplast – Carlo Callegari (CEO); Pierangelo Fantoni (chief financial officer).

Advisers
Equity – Grimaldi Studio Legale (legal); Deloitte (tax, commercial due diligence); Tauw (environmental due diligence); Goetzpartners (financial due diligence).
Vendor – Studio Pedersoli e Associati (M&A, legal) ; DLA Piper (tax).