Progressio buys Save the Duck

Alessia Argentieri
08 March 2018

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Italian private equity firm Progressio has acquired a 65% stake in Milan-based clothing business Save the Duck.

The deal was valued at €65m, which would equate to approximately 9x the company's 2017 EBITDA, and was supported by a debt package of around €23m provided by Mediocredito Italiano and Banca IFIS. Given a 2017 EBITDA of €7.2m, implied leverage for the deal is 3.2x.

The firm acquired a 51% stake from Marina Salomon's Alchimia and a 14% stake from CEO Nicolas Bargi, who will retain the remaining 35% holding and continue to lead the business.

The company will use the fresh capital to open its first store by the end of 2018 and to expand internationally, especially in the UK, the US and Japan.

The GP deployed capital from its Progressio Investimenti Fund III. The vehicle, which has a has a target of €225m, held a €86m first close in January 2018 and is currently fundraising. Save the Duck represents the first company acquired by the fund, which plans to make a further new investment in the coming months, the firm told Unquote.

Company
Founded in 1914 by entrepreneur Foresto Bargi under the name Forest, Milan-based Save the Duck is a clothing business that specialises in making coats and jackets with natural fabric and recycled polyester, without using animal-based products.

The company is currently present in 29 countries, mostly in Europe, through a network of wholesale stores, and is exporting around 50% of its sales. In 2017, Save the Duck generated a €7.2m EBITDA from revenues of €31.5m. The company forecasts a 24% EBITDA margin from revenues of €36m in 2018 and plans to double its turnover by 2020.

People
Progressio – Filippo Gaggini (managing partner).
Save the Duck – Nicolas Bargi (CEO).

Advisers
Equity – Carnelutti (legal); EY (financial due diligence); Russo De Rosa Associati (financial due diligence); Banca Imi, Banca Intesa (corporate finance).
Company – Fineurop Soditic (financial due diligence); Linklaters (legal).