Mandarin buys fashion accessories specialist Eurmoda

The company's founder and CEO, Marco Vecellio, reinvested alongside the GP and retains the remaining 30% in the business.

The GP invested via its Mandarin Capital Partners III fund, which was launched with a €250m target and a €300m hard-cap, and held a €148m first close in September. The vehicle targets companies with an enterprise value in the €30-70m range and EBITDA of €3-7m; it deploys equity tickets of €15-20m. This is the second deal inked by the fund, following its recent purchase of a 67% stake in Italian coffee capsules and beans producer Neronobile.

In addition to the equity from the fund, a debt package was provided by Cassa Centrale Banca to support the acquisition of Eurmoda, Unquote understands.

The acquisition was made via a newco named Margot, which will become the parent company of Eurmoda and an aggregation platform for further acquisitions in the leather accessories sector. Unquote understands that Margot will close a second deal in January 2020 by acquiring a company based in the Tuscany region that specialises in the production of leather goods and generates annual revenues of around €10m.

Company
Established in 1986 and based in Pederobba, near Treviso, Eurmoda specialises in the production of metal and leather bags, and accessories for luxury brands such as Louis Vuitton and Richmond. The company generated EBITDA of €4m from revenues of €30m in 2018.

People
Mandarin Capital Partners – Andrea Tuccio (partner).
Eurmoda – Marco Vecellio (CEO).

Advisers
Equity – Palmer Corporate Finance (corporate finance); Studio Giovanelli (legal); KPMG (financial due diligence); Gitti and Partners (tax); Long Term Partners (operational due diligence).
Company – BM&A (legal).

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• Topics
• Buyouts
• Southern Europe
• Consumer
• Mandarin Capital Management SA
• Italy
• KPMG