Wise Equity partially exits Vittoria to Telemos Capital

Ero Partsakoulaki
14 December 2022

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Wise Equity is set to exit its majority investment in Italian manufacturer of high-end bicycle tyres Vittoria to UK-based mid-market private equity firm Telemos Capital.

Telemos will acquire a majority stake in the business and will invest alongside Vittoria's senior management team and current majority stakeholder Wise Equity, according to a press release.

Mergermarket reported on Monday that the deal was signed for over EUR 200m. It first reported in October that Vittoria was coming up for sale in a Baird-run auction process, which attracted interest from Rivean (previously known as Gilde), PX3, Investcorp and Paragon. The company was marketed on over EUR 15m of EBITDA, the report added.

WiseEquity Fund V acquired the business in July 2020. The fund held a final close on GBP 232.6m in July 2019 and invests in Italian family-owned mid-market companies, operating in niche B2B sectors, with an enterprise value between EUR 20m-EUR 70m. It targets majority stakes and deploys equity tickets in the EUR 5m-EUR 20m range, according to Unquote Data.

Under the ownership of Wise, Vittoria acquired its Dutch counterpart A. Dugast, as reported. The company produces tubular tyres.

Telemos will seek to build on the company's leadership position in performance tyres and to accelerate its growth globally, according to the press release. Vittoria aims to further develop its products, services and channels, while continuing to invest in sustainability. It also plans to build upon its facilities and its recently inaugurated Vittoria Park in Lombardy, a cycling innovation and experience venue, it said.

In November, WiseEquity IV exited Trime, a designer of light towers for construction and events, in a sale to 21 Invest.

Company
Italy-based Vittoria manufactures high-end bicycle tyres known for its graphene-enhanced compounds and cotton and nylon casings. Founded in 1953, it has headquarters in Madone, Bergamo. It has factories in Thailand and the Netherlands and sells through subsidiaries in Asia, Europe and North America. In 2019, it generated around EUR 60m revenue, according to a company press release.

People
Vittoria − Stijn Vriends (chairman and CEO).
Telemos Capital − Philippe Jacobs (executive chairman), Jacob Polny (chief investment officer).
Wise Equity − Paolo Gambarini (founding partner).

Advisers
Vendor – Baird; Simmons & Simmons; OC&C; KPMG; Spada&Partners.
Equity – Lincoln; Linklaters; Oliver Wyman; PwC.
Management − Fides Partners.