Rhône Capital backs Illycaffè

The stake acquired by Rhône amounts to around 20%, in a deal that gives the company a value of approximately €1bn, according to market rumours.

Rhône saw off competition from Blackstone, Advent, Oaktree, TowerBrook and  Bain Capital in an auction run by Goldman Sachs.

With Rhône's support, the company intends to further boost its growth, develop its digital transformation and bolster its international expansion, primarily in the US. 

The GP is currently investing its Rhône Partners VI fund, which was launched in 2019 with a $3.3bn target. 

Rhône is a global private equity firm headquartered in New York, managing around €5bn in assets. Eurazeo owns a 30% interest in the firm, which it acquired for $100m in November 2017. As part of the agreement, Eurazeo appointed three representatives to Rhône's board, while Rhône appointed a non-voting observer on Eurazeo's supervisory board.

Company
Established in 1933 and headquartered in Trieste, Illycaffè is a coffee company specialised in producing coffee powder for espresso and coffee machines. It also manages a chain of Illy cafes and stores.

The company has a commercial presence in 140 countries worldwide and employs 1,400 staff. It generates annual revenues of around €520m.

People
Rhône Capital – Robert Agostinelli, Gianpiero Lenza (managing directors).
Illycaffè – Massimiliano Pogliani (CEO); Andrea Illy (president).

Advisers
Equity – Credit Suisse (corporate finance); Chiomenti (legal).
Company – Goldman Sachs (corporate finance); Studio Sabelli Benazzo (legal); Gattai Minoli Agostinelli and Partners (legal).

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• Topics
• Expansion
• Southern Europe
• Consumer
• Rhone Capital
• Italy