Quadrivio buys Dondup from L Catterton

Alessia Argentieri
25 March 2021

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Quadrivio has acquired Dondup, an Italian luxury clothing producer, from private equity firm L Catterton.

Quadrivio invested in the business via Made in Italy Fund, which supports the expansion of Italian companies operating in the fashion, design, beauty and food industries. The vehicle targets businesses with annual revenues of €10-55m and deploys equity tickets in the €10-20m range.

Made in Italy Fund was launched in January 2018 by Quadrivio in partnership with advisory firm Pambianco Strategie d'Impresa; it had a €200m target and held a first close in March 2018 on €100m. It subsequently increased its target to €300m and held an interim close on €150m in December 2019. The fund expects to hold a new interim close in April 2021 on around €225m and a final close by Q3 2021, Quadrivio told Unquote.

Dondup is the seventh deal made by the fund, which has deployed more than €140m so far.

A debt package to support the deal was provided by a pool of banks composed of Banco BPM, Banca Ifis, Intesa SanPaolo and Illimity.

With this acquisition, Quadrivio intends to create a platform specialised in the fashion sector, which will comprise Dondup and two portfolio companies of Made in Italy: 120% Lino, an Italian linen and natural-fibre garments producer; and Rosantica, a specialist in gem bags and precious accessories.

Quadrivio also plans to further boost Dondup's international expansion, primarily in Europe and the US, and open new flagship stores in several capital cities.

The sale ends a 12-year holding period for L Catterton, which initially bought a 40% stake in Dondup in 2009. Subsequently, the GP increased its stake to 91% in 2015, in a €60m deal. UniCredit, Banca Popolare di Milano and Banco BPM provided debt to support the acquisition.

Company
Founded in 1999 and headquartered in Fossombrone, near Pesaro, Dondup designs and produces luxury jeans and other clothing items for men and women.

It sells its products online, via retailers and in its single-brand store located in Milan.

Dondup generated EBITDA of €14.2m from revenues of €52.6m in 2020. Around 65% of its turnover is generated in Italy, while the remainder comes from outside of the country, primarily from the rest of Europe.

People
Quadrivio – Alessio Candi (Made in Italy Fund partner).
Dondup – Matteo Anchisi, (CEO).

Advisers
Equity – Finerre (corporate finance); Legance (legal); KPMG (tax).
Vendor – Emintad (corporate finance); NCTM (legal).