Idea's CCR I fund buys 51% of Pigna

Prior to the deal, existing shareholder Gruppo Jannone held an 82.8% stake via its Gioia holding, and the heirs of the founder Paolo Pigna retained a 15.9% holding. The transaction saw the Idea CCR I vehicle – co-managed by Idea Capital Funds and HIG Bayside Capital – acquire a 51% stake, while Gruppo Jannone retained a 49% stake.

As part of the transaction, Italian entrepreneur Alberto De Matthaeis was nominated chair and CEO of the business. Prior to joining Pigna, Matthaeis worked as managing director at Fondazione Salvatore Maugeri (currently in Carlyle Europe's portfolio) and Burgo Group, as CEO at Mondadori and JK Group, as well as operational director at Pirelli. Beside him, Idea managing director Vincenzo Manganelli and Giorgio Jannone will take the remaining seats on the company's management board.

The deal follows the company's debt restructuring process, which started in September 2015 as the company filed for bankruptcy protection with the Bergamo tribunal. In June 2016, Idea CCR I acquired a €10m loan from Pigna's creditors, BPM, BNL, MPS and Unicredit.

More recently, the Bergamo court homologated the creditors' plan, approved by the company's creditors in March 2017, and Idea CCR I requested a debt-for-equity swap, which led to the current transaction, according to a statement.

Following the deal, the GP aims to boost the company's relaunch focusing on product development and on improving the efficiency of the core business.

The deal is the third equity investment for Idea CCR I fund, following the full acquisition of Italian light fixtures manufacturer Targetti Sankey in March 2017 and the purchase of a 70% stake in auto parts manufacturer Util Group in April 2017.

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.

During the latest shareholders meeting of DeA Capital, the parent company of Idea Capital Funds, CEO Paolo Ceretti announced the intention to launch a second corporate credit recovery vehicle. The new fund will have the same target and investment strategy as its predecessor.

Company
Founded in 1839 and headquartered in Bergamo, Pigna manufactures notebooks and stationery products for schools and offices. The business mainly focuses on notepads, diaries, registers, archives, binders and dividers.

According to local press reports, the company generated €28m in revenues in 2016. The same reports put the company's current net debt level at €28.8m. According to unquote" sister publication Mergermarket, Pigna's sales decreased from €47.2m in 2013 to €38.8m in 2014.

In 2015, the company reportedly employed 180 people, while according to a source familiar with the situation the current headcount stands at 90.

People
Idea Capital Funds – Vincenzo Manganelli (managing director).
Cartiere Paolo Pigna – Giorgio Jannone (chair).

Adivsers
Equity – Gianni Origoni Grippo Cappelli & Partners (legal).

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