CVC inks third Italian deal with Pasubio
Buyout house CVC Capital Partners has acquired Pasubio, an Italian leather components manufacturer, from its founding family.
The GP acquired a controlling stake in Pasubio's holding company, Mario Pretto Finanziaria, via its €10.5bn CVC Capital Partners Fund VI, while the founding Pretto family will retain a minority stake and continue to lead the business alongside the management team.
The deal is reported to value the business at around €300m. Pasubio expects to generate a €335m turnover and €35m EBITDA in 2017.
According to a statement, Unicredit and BNP Paribas provided a credit facility to support the acquisition. Unconfirmed press reports included Intesa Sanpaolo in the lenders syndicate and valued the facility at €100m.
Following the deal, the company aims to boost its expansion through bolt-on acquisitions, some of which are reportedly at an advanced stage of negotiation.
The deal is CVC's third acquisition in Italy, following the purchases of Sisal for €1bn from Permira, Apax Partners and Clessidra Capital Partners in June 2016, and Doc Generici from Charterhouse for a reported €1.7bn in March 2016. CVC Capital Partners Fund VI held a final close in June 2013 on its €10.5bn hard-cap.
Company
Founded in 1955 as the Fratelli Pretto tannery, the company rebranded in 1963 to Pasubio and currently produces leather components, focusing mainly on the automotive industry and interior design segment.
The company is based in Arzignano, near Vicenza, and has six production plants, five in Italy and one in Serbia. It claims several large automotive groups among its clients, including Jaguar Land Rover, Volkswagen, FCA Group, BMW and PSA.
According to local press reports, the company employs 400 people and generated €290m in revenues and €30m in EBITDA in 2016, a 20% and a 30% increase compared to the previous year respectively.
People
CVC Capital Partners – Giorgio De Palma (senior managing director).
Advisers
Equity – Deutsche Bank (M&A); Shearman & Sterling (legal); PwC (financial due diligence); McKinsey & Co (commercial due diligence); Studio Tributario Associato Facchini Rossi & Soci (tax).
Vendor – CP Advisors (corporate finance); Studio Associato Corradi D'Inca' Ricco' Tagliavini Zini (legal); EY (commercial due diligence).
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