HIG Capital-backed Cadica buys Scatolificio Giorgi

The deal was financed by Italian lenders MPS Capital Services, Banca Ifis and UBI Banca.

HIG acquired Cadica from Italian GP Gradiente in May 2019 by deploying capital from its €825m HIG Europe Capital Partners II fund. Debt financing for the deal was provided by MPS Capital Services, Banca Ifis and UBI Banca.

In addition to Cadica, HIG also bought Tessilgraf and Bernini, two Italian companies specialising in the production of tags for the fashion industry. Subsequently, the group acquired Estro, a company specialising in manufacturing labels for clothing, in June 2019.

The GP merged the companies to creating a broader labels and packaging business for the luxury fashion industry. The group sells its products in 90 countries worldwide and serves more than 900 customers.

Following the add-on of Scatolificio Giorgi, the combined group is expected to reach revenues of around €60m in 2020.

HIG intends to continue to pursue this aggregation strategy with further acquisitions in the coming months, both in Italy and abroad.

Company
Established in 1980 and headquartered in Tolentino, near Macerata, Scatolificio Cartotecnica Giorgi specialises in manufacturing packaging for clothes, accessories, eyewear, cosmetics, jewellery and liquors.

The company manufactures 70,000 boxes per day and generates EBITDA of around €2m from revenues of €20m.

People
HIG Capital – Raffaele Legnani (managing director Italy).
Cadica – Andrea Carnevali (chair).
Scatolificio Cartotecnica Giorgi – Alessandro Giorgi (CEO).

Advisers
Equity – Pavia & Ansaldo (legal); Ubi Banca (corporate finance).
Company – Studio Pazzaglia (legal).

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