Idea CCR I buys Targetti Sankey

The GPs fully acquired the business from Targetti Holding, the holding company owned by the Targetti family, and several undisclosed lenders. The debtor-in-possession deal is part of a turnaround strategy for the asset, unquote" understands.

As part of the current deal, a representative from Idea CCR I's investment team will join the company's board. Financial details surrounding the transaction remain undisclosed.

According to press reports, the company passed through two refinancing plans, in 2012 and 2014, which included the sale of its sister company Louis Poulsen Lighting to Danish buyout house Polaris Private Equity, as well as the sale of a real estate asset in Tuscany.

Following the refinancing, the business saw its net debt burden dip from €115m in December 2013 to €5m one year later, according to press reports. As part of the last refinancing deal, the company's lenders were reported to lead a €40.2m capital increase for the business using a swap option in the original credit facility.

Idea CCR I is the first debtor-in-possession financing vehicle raised in the Italian market and focuses on Italian mid-sized enterprises in distressed situations, aiming to support their turnaround and restructuring plans. In July 2016, the fund held a first close on €260m towards a €500m target.

Company
Founded in 1928, Targetti manufactures indoor and outdoor light fixtures. Headquartered in Florence, the company has a presence in France, Spain, the UK, Russia, the US, the United Arab Emirates and China.

According to a source close to the situation, the company posted a turnover of €50m in 2016 and has 339 employees.

Advisers
Acquirers – CBA Studio Legale Tributario (tax).
Vendor – Linklaters (legal); Vitale&Co (corporate finance).

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• Topics
• Buyouts
• Consumer
• Southern Europe
• Italy
• DeA Capital