Wise-backed Tatuus bolts on Breda Racing

Alessia Argentieri
15 November 2018

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Racing cars designer and manufacturer Tatuus Racing, a portfolio company of Italian private equity firm Wise, has acquired a 75% stake in Breda Racing.

Breda's founders, Giorgio and Roberto Breda, will retain the remaining 25% holding and stay on with the company in their current roles of directors.

With this acquisition, Wise expects to boost the growth and internationalisation of Tatuus and Breda, and achieve operational and industrial synergies.

This is the second bolt-on made by Tatuus, following the acquisition of Autotecnica Motori in November 2017. The deal is part of the GP's buy-and-build strategy aimed at creating a pool of Italian companies with a leadership position in the motorsport segment, and in the design and production of turnkey racing cars. According to a statement, further acquisitions might follow in the coming months.

Wise acquired a majority stake in Tatuus in February 2017, while the company's founders, Gianfranco De Bellis and Artico Sandonà, retained a minority holding. Financial details of the transaction were undisclosed, though Wise typically makes equity investments in the €5-20m range for companies with enterprise values ranging from €20-200m.

Capital for the transaction was drawn from Wisequity IV, a 2015-vintage vehicle that held a final close on its €215m hard-cap in March 2016 after six months on the road. The fund is currently 50% invested in five portfolio companies: Corob, Imprima, Tapì, Tatuus Racing and Aleph.

Company
Founded in 1988 and headquartered in Villafranca Padovana, near Padua, Breda specialises in designing and manufacturing high-precision mechanical components and equipment for racing cars. The company generates annual revenues of around €5m.

People
Wise – Fabrizio Medea (senior partner); Marco Mancuso (investment manager).
Breda Racing – Giorgio Breda, Roberto Breda (founders, directors).
Tatuus Racing – Gianfranco De Bellis, Artico Sandonà, Giovanni Delfino (founders, CEOs).

Advisers
Equity – Simmons & Simmons (legal); Spada Partners (tax, corporate finance).
Company – Dehbora Archiutti (legal); Fabio Regazzo (tax, corporate finance).