Mandarin buys coffee specialist Neronobile

Unquote understands that the GP acquired a 67% stake, while the founder and CEO Giampaolo Furia retained the remaining 33% holding and will continue to lead the business. In addition, Carlo Salvadori, a former executive manager at Nestlè and Lavazza, will join Neronobile's board of directors. 

This is the first investment made by the GP via its Mandarin Capital Partners III fund (MCP III), which was launched with a €250m target and a €300m hard-cap and held a €148m first close in September. The vehicle invests in export-orientated companies able to sell around 60-70% of their production abroad and capable of further boosting their international expansion in Europe, Asia and the Americas. It targets companies with EV in the €30-70m range and EBITDA of €3-7m, and deploys equity tickets of €15-20m.

Mandarin intends to boost Neronobile's growth and bolster its expansion in the European and Asian markets. It also plans to pursue a buy-and-build strategy aimed at creating a platform for additional acquisitions in the coffee production sector. The GP is already in talks with a potential target for a first add-on, which is expected to be signed by the end of the year.

Previous funding
EOS Investment Management (EOS IM) acquired a 67% stake in Neronobile in October 2018, while the company's founders, the Furia family, retained the remaining 33% holding.

Equita, via its €100m Equita Private Debt Fund, supported EOS IM's acquisition by fully subscribing to an €8.9m subordinated bond.

Subsequently, Neronobile founder and CEO Giampaolo Furia re-acquired Eos' 67% stake in the company in early 2019.

Company
Founded in 2003 and based in Sarcedo, near Vicenza, Neronobile specialises in producing coffee capsules, as well as ground coffee and beans from roasting to packaging. The company sells its products under its own brands, Furia and Corcovado, which are compatible with Nespresso, Lavazza, Dolce Gusto and Caffitaly systems. 

In addition, Neronobile also provides customised coffee capsules and beans for clients that want to market the coffee under their own brands. The company produces around 200 million coffee capsules per year and generated EBITDA of €4m from revenues of €23m in 2018.

People
Mandarin Capital Partners - Lorenzo Stanca (managing partner).
Neronobile - Giampaolo Furia (founder, CEO).

Advisers
Equity - LMCR Law Firm (legal); Deloitte (financial, tax due diligence); Goetzpartners (operational due diligence); Bilma (ESG due diligence).
Company - M&C Partners (corporate finance); Pavia e Ansaldo (legal).

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• Buyouts
• Southern Europe
• Consumer
• Italy
• Deloitte
• Mandarin Capital Management SA