Bain Capital's Fedrigoni bolts on Cordenons

Alessia Argentieri
30 May 2018

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Bain Capital-backed Fedrigoni has wholly acquired Italy-based Gruppo Cordenons, which will be managed as an independent company.

According to a statement, the acquisition will allow Cordenons to grow and expand in an increasingly competitive market while maintaining the independence of its own brand.

Fedrigoni issued new notes worth €455m on the Dublin stock exchange in April, maturing on November 2024. The proceeds will be partially used to repay the debt for Fedrigoni's acquisition and may be also used to finance this transaction, Unquote understands.

Bain Capital acquired a majority stake in the Italian producer of speciality paper in December 2017 for €650m, which equates to 4.8x the company's 2017 EBITDA. A supporting debt package was provided by BNP Paribas, HSBC, UBI Banca and KKR, which were joint bookrunners on the deal. The GP deployed capital from its Europe IV fund to finance the acquisition. The vehicle held a final close on its €3.5bn hard-cap in October 2014.

Fedrigoni specialises in the production and sale of speciality paper and self-adhesive items. The company, founded in 1888 and headquartered in Verona, employs 2,700 people, has 14 facilities located in Italy, Spain, Brazil and the US, and distributes its products in 128 countries worldwide. It generated EBITDA of €134.4m and net profit of €72.3m from revenues of €1.1bn in 2017, while the net debt was reduced to €94m from €129m reported in 2016.

Company
Cordenons produces speciality paper, including metallic, iridescent, laid and embossed paper, for the luxury packaging and publishing industries, as well as technical paper for industrial filtration. The company distributes its products in 90 countries and generated a turnover of €89m in 2017, of which around 70% came from international markets.

The business is headquartered in Milan and has two production plants, one based in the original location of Cordenons and one in Scurelle.

People
Bain Capital – Ivano Sessa (managing director).
Gruppo Cordenons – Ferruccio Gilberti (CEO, chair).
Fedrigoni – Eugenio Berenga (CEO, chair).