Bain Capital buys Italmatch in SBO

According to press reports, the deal was valued at around €700m.

Unquote reported in March that Ardian was planning to sell Italmatch and was holding talks with international private equity funds.

The SBO ends a four-year holding period for Ardian, which acquired Italmatch from Mandarin Capital Partners and the Malacalza family in a deal that valued the company at around €220m, according to press reports. Ardian bought a 67.7% stake from Mandarin and a minority holding from the Malacalza family, reaching a total ownership of 88%, while the company's management retained a 12% stake.

Ardian deployed capital from its  AXA LBO fund V, closed on €2.41bn in October 2013, shortly after the GP finalised its spinout from parent company Axa.  The stake owned by Ardian was subsequently reduced to 81% in 2016 following a build-up transaction, Unquote understands.

Under Ardian's ownership, Italmatch doubled its sales and grew both organically and through acquisitions, with nine add-ons completed worldwide.

Bain Capital is currently investing its fourth Europe-focused fund, Bain Capital Europe IV, which held a final close in 2014 on €3.5bn. The vehicle is now around 70% deployed and the firm is raising a new pan-European fund with a €4.5bn target, which is expected to hold a final close by the end of the year.

Previous funding
Investindustral backed Italmatch in 1997 alongside Iniziativa Piemonte. It exited the investment in 2000, when it sold its stake to Argos Soditic and Iniziativa Piemonte. Subsequently, Investindustrial reacquired a 90% holding in the business in 2004 from Argos and Iniziativa Piemonte, while the company's management team retained the remaining 10% stake.

Mandarin and the Malacalza family bought a 90% stake in Italmatch from Investindustrial in 2010, by acquiring 70% and 20% of the business respectively, in a deal that valued the company at around €100m. The remaining 10% was retained by Italmatch's management team. Ardian then acquired the business in 2014.

Company
Established in 1997 and headquartered in Genoa, Italmatch is a manufacturer of speciality chemical additives, operating across four key business units: water and oil treatment; lubricants; flame retardants and plastic additives; and performance products and personal care.

Italmatch has 17 manufacturing sites, with seven located in Europe, five in North America and five in Asia Pacific. The company employs 780 staff across Europe, the US and Asia, and generated revenues of approximately €400m in 2017.

People
Ardian – Yann Chareton (managing director Italy).
Bain Capital Private Equity – Ivano Sessa (managing director).
Italmatch – Sergio Iorio (CEO).

Advisers
Company – Studio Nunziante Magrone (legal); Studio Legale Tributario STLex (tax).
Vendor – Goldman Sachs (M&A); BNP Paribas (M&A); Fineurop Soditic (M&A); Giovannelli e Associati (legal); Gitti and Partners (tax); Advancy (commercial due diligence).
Acquirer – Rothschild (M&A); Lincoln International (M&A); Latham & Watkins (legal); Pirola Pennuto Zei & Associati (tax); PwC (tax).

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• Topics
• Buyouts
• Southern Europe
• Industrials
• Ardian (formerly Axa PE)
• Bain Capital Europe
• Italy
• Secondary buyout
• Goldman Sachs
• Latham & Watkins
• Rothschild
• Lincoln International