Mandarin buys stake in ceramic manufacturer La Fabbrica

Amedeo Goria
03 April 2017

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Sino-Italian mid-cap buyout house Mandarin Capital Partners has acquired luxury ceramic manufacturer La Fabbrica.

As part of the deal, the GP backed the company's MBI via its Mandarin Capital Partners II vehicle alongside several high-net-worth individuals, including Graziano Verdi, former CEO at private-equity-backed Technogym; competitor Graniti Fiandre; and Belgian chemical and ceramics producer Koramic Group.

The new shareholders will retain control of the business via a newco, Italcer, and Verdi will head the business as CEO.

Following the transaction, the new backers aim to boost the company's expansion through a buy-and-build strategy across the Italian market, starting with a first acquisition expected in H1 2017. Furthermore, the GP has already secured a call option on La Fabbrica competitor La Tagina, according to a statement.

The company is also keen on expanding its business across the North American market and aims to open a new production plant in the US.

The GP's 2013-vintage vehicle, MCP II, held a final close on €200m in January 2016, short of the €500m target set in March 2013 and more than two years after a €110.5m first close in September 2013, according to unquote" data.

Company
Headquartered in Castel Bolognese, La Fabbrica manufactures high-end ceramic tiles, and employs a staff of 80. The business generated €45m in revenues with €5m of EBITDA in 2016, according to a statement.

People
La Fabbrica – Graziano Verdi (CEO).

Advisers
Equity – Oaklins Arietti (M&A); Studio Legance (legal); EY (financial due diligence, commercial due diligence, tax).