Mandarin's Neronobile acquires Daroma

The deal gives the company an enterprise value of around €35m, which equates to 7x its 2019 EBITDA, Unquote understands. Mandarin deployed an equity ticket of €15-20m. In addition, a debt package of 3.5x EBITDA was provided by MPS Capital Services and Crédit Agricole Italia.

Daroma will be controlled by Neronobile's holding company, Coffee Holding, and continue to operate independently. Mandarin will own a 60% stake in Coffee Holding, while Daroma founder Giulio Santin will reinvest in the business and retain a 20% stake. The remainder will be controlled by Neronobile CEO Giampaolo Furia.

The GP deployed capital via its Mandarin Capital Partners III fund (MCP III), which was launched with a €250m target and a €300m hard-cap, and held a €173m first close in December. Following this bolt-on, the fund will be around 18% deployed. It plans to acquire a German company and an Italian business by March 2020 and reach 30% deployment.

Mandarin intends to further expand Coffee Holding by pursuing several additional bolt-ons in the coming months.

The GP acquired a 67% stake in Neronobile in October 2019, while the founder and CEO Giampaolo Furia retained the remaining 33%. Mandarin invested in the company via its third fund and deployed a ticket of around €10m.

Company
Rome-headquartered Daroma specialises in the production of coffee capsules, as well as ground coffee and beans, from roasting to packaging for clients that want to market the coffee under their own brands. Its customer base includes several Italian coffee brands, including Palombini, Camilloni, Nori and Giovannini.

Unquote understands that the company generated EBITDA of €5m from revenues of €25m in 2019.

People
Mandarin Capital Partners – Lorenzo Stanca, Alberto Camaggi (managing partners).
Daroma – Giulio Santin (founder, CEO).

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