Entangled, Capital Dynamics back SM Pack

Unquote understands that Entangled bought a 66% stake, while Capital Dynamics acquired a 30% holding. The remainder was retained by the company's management.

The two GPs intend to support the company's growth both organically and via add-ons in similar segments of the market, while boosting its international expansion.

This is the first deal made by Entanged via its debut fund EC I, which launched with a €100m target and a €150m hard-cap in November 2019. The vehicle has raised around €50m so far. It acquires majority stakes in Italian SMEs operating in the industrial sector, with a focus on manufacturing, engineering, mechanics, agri-food, technology and automation. The fund targets businesses generating EBITDA in the €2-6m range and revenues of €10-50m. 

Company
Established in 1964 as Soffieria Mezzadri and headquartered in Parma, SM Packs specialises in manufacturing glass packaging for the pharmaceuticals and cosmetics industries.

Employing 130 staff, the company operates three production plants: two located in Italy and one in Spain.

SM Pack generated turnover of €15m in 2019, with an EBITDA margin of 10-15%. Its revenues increased by 15% in H1 2020.

People
Entangled Capital – Roberto Giudici (CEO, managing partner); Anna Guglielmi (managing partner).
Capital Dynamics – David Smith (senior managing director).
SM Pack – Claudio Baratta (CEO).

Advisers
Equity – Legance (legal); PwC (financial due diligence); Russo De Rosa (tax); ERM (environmental due diligence); King & Wood Mallesons (legal).
Company – Pirola Corporate Finance (corporate finance); Studio Legale Miglioli (legal).

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• Topics
• Buyouts
• Southern Europe
• Industrials
• Capital Dynamics
• Italy
• PwC
• King & Wood Mallesons