IGI invests in Route Capital-backed Test Industry

IGI bought a 42% stake in the business, while previous backer Route Capital Partners reduced its stake from 32% to 23% and investment company Equilybra from around 30% to 18%. The company's founders also reinvested in the business and retained a 17% stake.

IGI drew capital from its IGI Investimenti Sei fund, which was launched with a €150m target, held a €100m first close in November 2018 and expects to reach a final close after the summer. This is the second deal made by the vehicle, following its acquisition of Nuovaplast in January 2019.

In addition to the equity from the fund, a debt package was provided by Crédit Agricole and BPER Banca to support the acquisition of Test Industry.

IGI backed the company alongside entrepreneur Eraldo Bianchessi via a newco called Thalia, while Route Capital Partners, alongside entrepreneur Maurizio Perroni, reinvested via a club deal named GMN.

Following the deal, IGI partner Angelo Mastrandrea will be appointed president of the company, while Daniel Spezzaballi and Roberto Malfagia will become co-CEOs.

The GP, alongside Route Capital, plans to strengthen the company's market position and boost its growth both organically and via new acquisitions, primarily in Germany and the US.

Previous funding
Route Capital, via a club deal, bought test desks manufacturers Bimal and Leonardo alongside Equilybra, and merged the companies, establishing Test Industry in July 2017. Route Capital acquired around 32%, while Equilybra bought 30% and the companies' founders, Daniel Spezzaballi and Roberto Malfagia, retained the remainder.

Company
Milan-headquartered Test Industry controls test desk manufacturer Bimal and Leonardo. Perugia-based Bimal was founded in 1984 and specialises in designing and manufacturing test desks for the automotive, engineering and aerospace industries, while Leonardo was established in Brescia in 1994 and produces leak test machines, and wheel and tire testing machines.

The group employs 80 staff, has a presence in 50 countries worldwide and generated EBITDA of €8m from revenues of €32m in 2018.

People
Route Capital Partners – Giuseppe Altieri, Nicola Carminucci, Marco Ferrara (partners).
IGI Private Equity – Angelo Mastrandrea (partner).
Test Industry – Daniel Spezzaballi, Roberto Malfagia (co-CEOs).

Advisers
Equity – Chiomenti Studio Legale (legal); DV Studio Legale (legal); PwC (financial due diligence); Di Tanno e Associati (tax); Goetzpartners (operational due diligence).
Vendors – LABS Corporate Finance (corporate finance); LCA (legal).

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