FII, Hat Orizzonte acquire Marval

Alessia Argentieri
09 October 2018

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Fondo Italiano d'Investimento (FII) and Hat Orizzonte have acquired a 69.5% stake in Marval from Mandarin Capital Partners and the company's founders, the Marchiando family, which will retain the remaining 30.5% holding and continue to lead the company.

Unquote understands that FII invested €34m in the company and acquired a majority stake, while Hat Orizzonte deployed €10m and bought a minority holding. A newco named Stark was created for the transaction, 75% owned by FII and 22% by Hat Orizzonte, while the remaining 3% is controlled by minority shareholders.

In addition to the equity tickets deployed by the two GPs, a debt package was provided by a pool of banks composed of Crédit Agricole, Banco BPM, BNL and MPS Capital Services. Unquote understands that the deal was financed at two-thirds equity and one-third debt.

This is the first investment made by FII via its Fondo Innovazione e Sviluppo vehicle, which held a €150m first close in September 2017 and has a €700m target. The vehicle was launched by FII in 2017 alongside a VC fund named FII Tech Growth, following the decision to sell its whole portfolio to Neuberger Bergman.

Hat Orizzonte deployed capital from its Technology & Innovation fund, which was launched in July 2017 with a €100m target and held a first close on €32m in October 2017. Unquote understands that the GP will hold a €50m second close by the end of the year and expects to hit its target in a final close by June 2019. This is the first investment made by the fund, which targets minority stakes in Italian SMEs operating across the technology sector.

The GPs intend to support Marval's organic growth and international expansion, and pursue a buy-and-build strategy to consolidate and boost the company's market presence in Italy and abroad.

Previous funding
Mandarin Capital Partners bought a 27% stake in Marval in March 2016. The GP invested €12m in the business, part of which was used to purchase shares from the founders, with the remainder structured as a capital increase. As part of the deal, the GP committed an additional capital injection of €6m in case of further needs for business development within the following 18 months.

Company
Established in 1950 and headquartered in Castellamonte, near Turin, Marval manufactures mechanical components for commercial vehicles and luxury cars, including cylinder heads, gear parts, brakes and suspension. The business generated a 20% EBITDA margin from revenues of €75m in 2017, and expects to exceed a turnover of €85m in 2018. Marval has four production facilities, located in Italy, China and the UK, and employs 477 staff.

People
Hat Orizzonte – Ignazio Castiglioni (CEO); Nino Attanasio (president).
Marval – Carlo Mammola (CEO).

Advisers
Equity – Bonelli Erede (legal); Orrick (legal); Fineurop (financial due diligence); Long Term Partners (corporate finance); PwC (financial due diligence).
Vendors – Gianni Origoni Grippo Cappelli & Partners (legal); Pavesio e Associati Studio Legale (legal); GCA Altium (corporate finance); Deloitte (financial due diligence); Roland Berger (commercial due diligence).