Bravo Invest reaps 3x, 4.5x MM apiece in Arbo and MTW exits

Wahida Ahmed
16 May 2022

Tweet
Facebook
LinkedIn
Google plus
Send to

Bravo Invest has fully exited two of its Italian portfolio companies, Arbo and Metalworks Holding (MTW), sold to NB Renaissance and Deutsche Beteiligungs AG (DBAG), respectively.

The sale of Arbo valued the distributor of spare parts for heating and cooling systems at an EV of EUR 135m and generated a 3x money multiple, according to a source close to the situation. MTW, a fashion-finishes manufacturer, was valued at EUR 165m EV and returned a 4.5x money multiple, the source said. Bravo has now seen four exits from its debut fund.

Bravo Capital Partners Fund held a final close on EUR 100m in August 2017, while Bravo Capital Partners Fund II held a first close on EUR 60m in February 2022 and has a target of EUR 110m. Fund II expects a final close in the first half of 2022 and has made one deal to date with the acquisition of Italy-based Lorenzi last June, according to Unquote Data.

Bravo and NB Renaissance declined to comment.

Arbo
Mergermarket reported in April 2022 that NB Renaissance was set to acquire Arbo, beating competition from Chequers, Nextalia and Ambienta. According to the report, Arbo was marketed off EUR 12m EBITDA for 2022.

Bravo bought Arbo in May 2018 from Ersel Investimenti, which reinvested for a majority stake in the deal, while Bravo held a 40% stake in the company and management another 7%. Both sponsors have now fully exited the business.

Under Bravo's ownership, Arbo sales increased from EUR 60m in 2018 to EUR 85m in 2022 and increased EBITDA by 70%. The company expanded into complementary areas including the refrigeration market as well as broadening its geographical reach, according to a press release.

MTW
Bravo invested in MTW in 2016 acquiring a 60% stake, which was diluted down to 53% after the completion of add-on investments.

During Bravo's ownership, MTW increased its sales from EUR 18m in 2016 to over EUR 60m in 2021, while EBITDA grew three-fold, according to a press release. MTW was transformed from a producer of zamak accessories serving distributors to a group that can produce materials including zamak, brass, plastic, steel and can directly serve luxury fashion brands.

DBAG invested in MTW through DBAG Fund VIII, which held a final close on EUR 1.109bn in May 2020. Luxemburg-listed investment company, Luxempart, an investor in Bravo Invest, and the current management team will take a minority stake in the business following this deal. Former owners and founders will also reinvest, according to a press release. Giovanni Revoltella, partner and CEO of DBAG Italy, told Unquote DBAG holds a majority of the company of over 60%.

This deal marks the seventh MBO from the fund and the first the vehicle makes in Italy. Fund VII has invested in two Italian companies, PM Flex in 2020 and Itelyum in 2021. DBAG has put a team in place in Milan as it seeks to invest in Italy-based B2B services companies.

Under DBAG's ownership, MTW will continue its buy-and-build strategy with a view to consolidating.

Revoltella said the company has an M&A pipeline and it will focus on penetrating complementary metal segments and expanding in France and Italy. The business will also grow organically with a view to offering new sustainable materials to its clients who are increasingly focused on ESG, said Revoltella.

Mergermarket reported earlier this month that first-round bids for MTW came in at around EUR 145m to EUR 155m. The report also noted MTW generated EUR 14.5m EBITDA on EUR 60m revenues in 2021. It is expected to reach EUR 64m in revenue this year and was being marketed off around EUR 16m EBITDA.

Companies
Lazio-based Arbo was founded in the 1970s and has 150 staff. It is an independent distributor of spare parts for gas boilers, thermohydraulic systems, and air conditioning products. The company has two subsidiaries in Spain and UK.

Metalworks Group was established in 2016 by Bravo Invest. MTW Holding is based in Castelli Calepio and comprises three companies: Metalworks (acquired in 2016), FGF (acquired in 2018), and Mengoni & Nassini (acquired in 2020). The company designs and manufactures fashion accessories including belt buckles, jewellery, clothing, among other items for luxury fashion brands. It has 250 staff and has a subsidiary in Paris.

People
MTW – Cesare Luzzana (CEO).
Bravo Invest – Giovanni Saccaggi (partner).
Deutsche Beteiligungs AG – Giovanni Revoltella (partner and CEO of DBAG Italy); Tom Alzin (member of DBAG's board of management).

Advisers (MTW)
Vendor – Mediobanca (corporate finance); Deloitte (financial & tax due diligence); Pedersoli (legal); Bain & Co (commercial due diligence); ERM (environmental due diliegnce).

Advisers (Arbo)
Vendor – Mediobanca (corporate finance); Deloitte (financial & tax due diligence); Pedersoli (legal); Goetze (commercial due diligence).

Advisers (DBAG)
Equity – Latham & Watkins (legal); GPBL (legal); EY (financial & tax due diligence); AON (insurance due diligence); ERM (environmental due diligence); Bain & Co (commercial due diligence).