Star Capital backs IPS and Moda Italia in MBO

Unquote understands that Star Capital deployed €17m in equity, while an €18.3m debt package was provided by Mediocredito Italiano and MPS. Given that combined EBITDA is around €8.6m, implied leverage for the deal is 2x.

The GP invested via its Star IV Private Equity Fund, which was launched this year with a €120m target, held a first close on €65m in August and expects to reach a final close by the end of 2019.

Moda Italia was wholly owned by the company's founders, the Marzioni family, while IPS was 52% controlled by the Marzioni family and 48% by the Santini family.

Following the deal, the two businesses will be wholly owned by a new company, Holding Star Regeneration, 70% controlled by Star Capital and 30% by the Marzioni family, who reinvested in the business alongside the GP. Meanwhile, the Santini family fully exited the investment by selling its minority stake.

The companies will be led by Enrico Marzioni, who will take on the roles of president and CEO of IPS, his wife Anna Maria Barzi and his brother Massimo Marzioni, who will be appointed CEO and president of Moda Italia, respectively.

Company
Founded in 2006 and headquartered in Urbania, IPS and Moda Italia specialise in producing tailored clothing, jeans and sportswear for several Italian and international fashion brands. Unquote understands that IPS recorded EBITDA of around €7.4m from revenues of €37m, and Moda Italia generated EBITDA of €1.2m from a turnover of €6.2m in 2017.

Advisers
Equity – Deloitte (financial due diligence); Studio Accinni Cartolano e Associati (legal); Studio Russo De Rosa (financial due diligence); Studio De Luca & Partners (legal); Pambianco (operational due diligence). 
Company – Umberto Bianco (legal).

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