Investindustrial acquires majority stake in Eataly

The investment is being made via Investindustrial VII, which held a final close on EUR 3.75bn in November 2019, according to Unquote Data. The fund takes controlling stakes in European companies, primarily in southern Europe, operating in the consumer goods, industrial and healthcare services sectors.

Pending closing, the transaction will see existing shareholders Eatinvest (Farinetti family), the Baffigo/Miroglio family and Clubitaly (Tamburi Investment Partners) hold the remaining 48% of the company, according to a press release. Current CEO Nicola Farinetti will be named chairman, with a new chief executive to be announced shortly.

The investment will allow Eataly to retire its net financial debt and maximize financial flexibility for its global expansion plans, according to the announcement. The capital injection will support both the opening of flagship stores and the development of new formats, as well as enabling the acquisition of all the minority shares in Eataly’s existing US business.

Eataly's growth will be supported by Investindustrial’s presence in the Italian, European, North American and Asian markets, according to the announcement. Eataly will continue to expand in foreign markets such as North America, where it is already active with eight flagship stores, and through continued development in Europe, as well as the Middle East and Asia, where the group is present with 16 franchise stores.

Investindustrial has recently invested over EUR 2.5bn in the food sector, including Italian private label food products La Doria and the meal preparation business of Treehouse Foods. Other investments include ingredients companies, such as CSM Ingredients, food tech companies, such as Hi-Food, and hospitality through the Dispensa Emilia restaurant chain.

Investindustrial is expected to close its third lower mid-market fund in the coming months at its target of EUR 1bn, as reported by Unquote. The fund, registered last August, held a first close in April and has since raised 75% of the target.

Company
Eataly, founded in 2003 by Oscar Farinetti, is an Italian food retailer promoting the country’s food, beverage and culture through markets, counters, cafés, restaurants and educational offerings. It has 44 shops in 15 countries, including Italy, the US, Canada, the United Arab Emirates, Japan, Germany, Great Britain, France, Sweden and Brazil. The group, which is headquartered in Monticello D'Alba (Cuneo), has an expected turnover of about EUR 600m by 2022.

People
Investindustrial − Andrea C. Bonomi (chairman of advisory board).
Eataly − Nicola Farinetti (CEO).

Advisers
Equity − Studio Legale Chiomenti, Kirkland & Ellis (legal); Deloitte (accounting and tax); Boston Consulting Group (commercial DD); UniCredit (corporate finance); Ramboll (environmental, health and safety); WTW (insurance).
Company − Studio Legale e Tributario Fivelex, Tarter Krinsky & Drogin LLP, Danow, McMullan & Panoff, P.C., Olshan Frome Wolosky LLP (legal); Biscozzi Nobili Piazza (tax).

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• Topics
• Consumer
• Buyouts
• Southern Europe
• Investindustrial
• Italy