LBO France's Gioconda backs Demas

The investment was made via the Small Caps Opportunities fund, which held a final close on €104m in November 2018 and has a dedicated investment team of six managers, three of whom are based in Milan.

The fund invests in high-growth French and Italian companies with strong potential for international expansion and an enterprise value of less than €100m.

This is the eighth investment made by the fund and its third deal in Italy, following the acquisition of glass packaging manufacturer Vetroelite in May 2017 and the purchase of Bluclad, a company specialising in metal galvanisation for the fashion and luxury industry, in December 2018.

Italian lender Banca IFIS and logistics company Giovanni Ambrosetti also took part in the investment, alongside the company's management team, led by chair Fabrizio Foglietti, who will stay on with the business and retain his role. The vendors – the founding Foglietti family – will retain a minority stake in the company.

A debt package to support the deal was provided by BPER Banca, Banco BPM and Intesa SanPaolo.

With the support of Gioconda, the company plans to boost its organic growth, expand its product range, and pursue a buy-and-build strategy through M&A in Italy and internationally.

Company
Established in 1969 and headquartered in Rome, Demas specialises in distributing veterinary and pet products.

The company supplies pharmacies across Italy with veterinary drugs, medicines and food supplements, and operates a subsidiary, Foschi, which provides vets and animal clinics with healthcare products, medication, equipment, medical devices and diagnostic tools.

In addition, Demas sells veterinary care products, pet food and accessories through its chain of retail stores named Giulius, based in Rome and its outskirts.

The company employs 160 staff and generates revenues of €126m.

People
Gioconda – Arthur Bernardin (managing director).
Demas – Fabrizio Foglietti (CEO, chair).

Advisers
Equity – Deloitte (financial due diligence); Goetz Partners (financial due diligence); KPMG (operational due diligence); NCTM Studio Legale (legal).
Company – De Vecchi (M&A); Orrick (legal).

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