Idea Capital's CCR I fund purchases 70% stake in Util

Amedeo Goria
03 April 2017

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Italian private equity house Idea Capital Funds has acquired a 70% stake in Italian auto parts manufacturer Util Group via its debt-in-possession vehicle, Idea Corporate Credit Recovery I (CCR I), co-managed alongside HIG Bayside Capital.

As part of the deal, CCR I bought the 70% stake in Util from existing shareholders Investitori Associati and the management. Following the transaction, both Investitori Associati and the management will retain a minority stake.

According to press reports, the deal valued the business at €90m EV, including the value of the debt and quasi-equity instruments.

Previous funding
In 2003, Investitori acquired a controlling stake in the business alongside Wise, an Italian buyout house. The latter purchased a minority stake via its maiden vehicle Wisequity and divested the asset in June 2010.

In July 2016, CCR I took over the majority of debt and quasi-equity instruments from the company's creditors, BNP Paribas, UCI and Banco BPM, while GE Capital – part of Banca Ifis – did not follow the other lenders and maintained its debt exposure to the company.

Company
Established in 1959 and headquartered in Villanova d'Asti, Util manufactures blank metal parts for brake systems focusing on the automobile industry. The business also has a presence in Canada, Mexico and China.

In 2016, the company reportedly generated €130m in revenues and €18m in EBITDA. It currently employs a staff of 1,400.

Advisers
Equity – CBA Studio Legale (legal).
Vendors – Deloitte (M&A); Clifford Chance (legal).
Company – Studio Gilberti Triscornia e Associati (legal).