Oxy Capital backs GPack

The operation includes the restructuring of around €60m in debt; injection of fresh funds; repayment of emergency financing with a credit line of €14m provided by Illimity; new factoring facilities of €18m, also provided by Illimity, in addition to €3m previously provided by Banco BPM, which has confirmed its financial support to the company.

Following the deal, Oxy and Illimity will take over the company's governance and make available to the company funds and managerial expertise required to implement a new business plan, while the company's owners Pierpaolo and Elena Bramucci will retain a minority stake.

The lenders will contribute to the rescue operation by consolidating their debt, converting part of this to equity instruments, and participating in the company's relaunch project in order to maximise the recovery of their receivables.

The deal needs approval from the Milan Tribunal, which is expected by the summer.

Previous funding
Over the past few years, GPack has inked several add-on acquisitions, but recorded a decrease in profitability, mainly attributable – according to the company – to a delay in the process of restructuring and integrating the businesses it had acquired, as well as the effect of the pandemic on the outlet markets.

The company filed for the bankruptcy protection procedure known as "concordato preventivo" in July 2020. Subsequently, Illimity provided emergency financing to the company in October 2020.

Company
Established in 1996 and based in Truccazzano, near Milan, GPack specialises in the manufacturing of cardboard boxes and carton packaging for the luxuries, pharmaceuticals, cosmetics, food and beverage industries.

The business also designs and manufactures counter and freestanding displays, and advertising posters.

Employing 370 staff, the company operates six production plants located across Italy.

People
Oxy Capital – Stefano Visalli (chair); Enrico Luciano (partner).
Illimity Bank – Umberto Paolo Moretti (head of turnaround).

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• Topics
• Turnaround/Special Situations
• Restructuring
• Southern Europe
• Industrials
• Oxy Capital
• Italy