Alto Partners backs Millefili

Alessia Argentieri
09 March 2018

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Alto Partners has acquired a 70% stake in Millefili, an Italian company that specialises in the production of yarns for the knitwear industry.

The GP invested alongside entrepreneur and sector specialist Daniele Selleri, who bought a 5% stake; while the remaining 25% of the company was acquired by Millefili Shares, a vehicle controlled by Gabriele Galli, manager and son of the founder Francesco Galli.

Following completion of the deal, which is expected to close by the end of April 2018, Gabriele Galli will take up the role of CEO and lead the company alongside a new management team selected by Alto Partners.

With the fresh capital, the company intends to bolster its growth organically, further expand its product offering and strengthen its market position.

The GP is deploying capital from its Alto Capital IV fund, which held a second close in December 2017 on €152m and has a hard-cap of €210m. The firm told Unquote that the vehicle will hold its final close by the end of April.

Company
Founded in 1981 and based in Carpi, near Modena, Millefili specialises in the production of fine yarns for knitwear, making carded and combed yarns for international brands active in the fashion and luxury industries. The company has a presence in Europe and the US, and exports around 60% of its sales.

Millefili has 70 staff and in 2017 generated revenues of €61.5m, with an EBITDA margin of around 9%.

People
Alto Partners – Marco Pellegrino (director).
Millefili – Francesco Galli (founder); Gabriele Galli (CEO).

Advisers
Equity – Pedersoli Studio Legale (legal); Bain & Co (commercial due diligence); PwC (financial due diligence).
Company – BLF Studio Legale (legal).