Alpha exits Pavan via trade sale

The deal saw the GP fully exit its controlling stake after two and a half years. Financial terms surrounding the transaction remain undisclosed. The deal is expected to close by year-end.

Previous funding
In September 2011, Intesa Sanpaolo, through its subsidiary IMI Investimenti, acquired a minority stake of around 10% in the business for a reported €8m.

In March 2015, Alpha acquired a majority stake in Pavan. Terms of the transaction remained undisclosed, but the management team reinvested for a 40% stake in the newco, according to unquote" data. Alpha's capital was drawn from its sixth fund, a 2011-vintage vehicle that reached a €700m final close in June 2012.

According to unquote" sister publication Debtwire, nine banks backed the company's MBO: Natixis, UBI, BPM, MPS, IKB, Rabobank, BPER, Creval and Banca Imi. The latter acted as agent bank. The financing included a €42m 5.5-year term loan A, a €73m 6.5-year term loan B and a €3m three-year RCF. A cash bridge of €35m was also provided. The leverage was reportedly 3.7x.

Company
Founded in 1946, Pavan focuses on extrusion and milling technology for processing fresh and dried pasta, pellet snack products and breakfast cereals. Based in Galliera Veneta, near Padua, the company employs 680 people and has production plants in Italy and China.

According to a statement, the business generates €155m in revenues and €29m in EBITDA. It makes 40% of its sales in Europe, while the American markets account for 27% of generated revenues, Asia 17% and Africa and the Middle East 14%.

People
Alpha Private Equity – Edoardo Lanzavecchia (senior partner).
Pavan Group – Andrea Cavagnis (CEO).
GEA – Jürg Oleas (CEO).

Advisers
Acquirer – Mediobanca (M&A); Hengeler Mueller (legal); DLA Piper (legal).
Vendors – Edmond de Rothschild (corporate finance); Pedersoli Studio Legale (legal).

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• Topics
• Exits
• Industrials
• Southern Europe
• Trade sale
• Italy
• Alpha Private Equity