Charme Capital exits Atop in €380m deal

Alessia Argentieri
21 May 2019

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Pan-European mid-market private equity firm Charme Capital Partners has sold its 63% stake in Italian machinery producer Atop to Ima Group.

The deal gives the company an enterprise value of €380m, which equates to 24x its 2018 EBITDA of €15.8m and 15x its forecast 2019 EBITDA of €25m.

Milan-listed Ima, which already owns a 21% stake in the company, will pay €230m to acquire Charme's holding, reaching an 84% stake in the business.

Charme's sale of its stake in Atop represents a cash-on-cash return of 4.5x and an IRR in the range of 100%.

The acquisition will allow Ima to further consolidate its market position and penetrate new segments in the machine and automated production line design and construction industry.

Charme Capital, via its third fund, acquired a 63% stake in Atop in May 2017, investing alongside Ima, which bought a 21% stake for €15.8m. The acquisition was made via a special purpose vehicle that controlled 84% of the company and was 59% owned by Charme and 25% by Ima.

The remaining 16% was retained by the company's founders and managers, Luciano Santandrea, Fabrizio Cresti and Massimo Ponzio, who reinvested in the business. Unicredit supported Charme's acquisition with an undisclosed credit facility.

Under Charme's ownership, Atop increased its revenues from €39m in 2017 to €60m in 2018, and to a forecast €89m in 2019. Its EBITDA rose from €9.5m in 2017 to €15.8m in 2018, and to a forecast €25m in 2019.

In addition, the company expanded its customer base by adding several new automotive manufacturers and industrial groups, and reaching 380 clients worldwide. It also scaled up its staff by hiring 50 people and reaching 250 employees.

This is the second exit for Charme III, following its recent sale of Igenomix in March 2019. The fund held a final close in January 2017 on €645m, surpassing its initial target of €500m, and is now around 75% deployed.

Company
Founded in 1993 and headquartered in Barberino Val D'Elsa, near Florence, Atop manufactures rotors and stators for electric motors, focusing mainly on the e-mobility, automotive, household appliances and industrial tools sectors. The company reported net debt of €12.5m in 2018.

People
Charme Capital Partners – Matteo di Montezemolo (founder, CEO).
Atop – Luciano Santandrea (founder); Amedeo Felisa (chair).
Ima Group – Alberto Vacchi (CEO, chair).

Advisers
Vendor – Legance Law Firm (legal).
Acquirer – Poggi & Associati (legal); PwC (corporate finance).