Arcadia-backed Favillini bolts on Idea Grafica

The transaction was financed with a debt package provided by Crédit Agricole Italia and UBI Banca.

Following the deal, Idea Grafica founder Laura Pettinari will reinvest in Grafiche Favillini. She will stay on with the business as CEO and will be joined by Alberto Favillini as president, to accelerate the integration with Grafiche Favillini and the development of a combined strategy and business plan.

The new group will generate EBITDA of around €6m from revenues of €25m and employ a staff of 130 people across three productions facilities located in Italy.

Arcadia acquired a 51% stake in Grafiche Favillini from the founding Favillini family in February 2020. The equity for the deal was drawn from Arcadia Small Cap II, which deploys tickets in the €6-12m range in companies with revenues of up to €50m. The fund closed on €80m in May 2019 and is currently 40% deployed. A debt package was provided by Crédit Agricole to support the transaction.

Company
Established in 2003 and based in Liscate, near Milan, Idea Grafica is a producer of patient information leaflets, medication labels and packaging for the pharmaceutical industry.

The company generated revenues of €12m, with a 15% EBITDA margin in 2019.

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

Advisers
Acquirer – Ethica Corporate Finance (corporate finance); Fineurop Soditic (debt advisory); NCTM (legal); Studio Russo De Rosa Associati (tax); KPMG (financial due diligence).
Vendor – Pavia e Ansaldo (legal).

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