Arcadia buys pharma packaging specialist Favillini

Alessia Argentieri
14 February 2020

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Arcadia has acquired a 60% stake in pharmaceutical packaging manufacturer Grafiche Favillini from the founding Favillini family, who retained the remainder.

The equity for the deal was drawn from Arcadia Small Cap II, which deploys tickets in the €6-12m range in companies with EBITDA of up to €5m. The fund closed on €80m in May 2019 and is currently 40% deployed, the GP told Unquote.

A debt package was provided by Crédit Agricole to support the deal. The credit provided will be mainly used to finance additional bolt-ons with the aim of creating an aggregation platform across the Italian pharmaceutical packaging sector, the GP told Unquote.

This is the third investment made by the fund, following its acquisition of Chiorino Technology in March 2018 and its purchase of a 75% stake in Castello Italia in September 2018. The fund expects to close a total of seven deals, including one which will be signed in the coming months.

Company
Established in 1886 and based in Livorno, Grafiche Favillini specialises in manufacturing packaging for the pharmaceutical industry. The company generated EBITDA of around €3.4m from revenues of €13.4m in 2019 and expects to reach turnover of €15m in 2020, the GP told Unquote.

People
Arcadia – Simone Arnaboldi (CEO); Alessandro Grassi (director); Tristano Pinter (associate).
Grafiche Favillini – Eugenio Favillini (CEO).

Advisers
Equity – Fineurop Soditic (corporate finance); NCTM (legal); Goetzpartners (operational due diligence); KPMG (financial due diligence); Sicor Service (financial due diligence).
Company – Studio Masi (corporate finance); Studio Russo De Rosa Associati (legal).