PEP's IDB buys interior design specialist Modar

Alessia Argentieri
10 June 2019

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Interior design platform Italian Design Brands (IDB), which is backed by Private Equity Partners (PEP), has acquired interior design specialist Modar.

Unicredit provided a debt package to finance the deal.

Modar founder and CEO Dante Malagola will continue to lead the business and retain a minority stake alongside Italian entrepreneur Giovanni De Ponti.

Modar is the sixth bolt-on inked by IDB, which expects to reach a turnover of €130m in 2019.

IDB was established by PEP, Permira's Paolo Colonna and a group of private investors in May 2015 to pursue a buy-and-build strategy aimed at creating a Milan-based interior design platform.

The consortium backed an MBO for furniture manufacturer Gervasoni in May 2015 and subsequently bolted on interior designer Meridiani in 2016, furniture business Cenacchi International in 2017, lighting designer Davide Groppi and luxury furniture designer Saba Italia in 2018.

Company
Established in 1971 and based in Paderno Dugnano, Modar designs interiors and bespoke furniture for luxury and fashion brands' stores and show rooms. The business generated revenues of €30m in 2018, of which 80% came from outside Italy.

People
Private Equity Partners – Fabio Sattin, Giovanni Campolo (co-founders, managing partners).
Italian Design Brands – Giorgio Gobbi (CEO).
Modar – Dante Malagola (founder, CEO).

Advisers
Acquirer – Eversheds Sutherland (legal); Studio Maisto e Associati (tax); Tonucci & Partners (legal); SCS Consulting (corporate finance); Merchants Square (corporate finance).