Stirling Square buys Tapi in SBO from Wise Equity

Min Ho
21 December 2022

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Stirling Square Capital Partners is to acquire Italy-based beverage packaging closures group Tapi from Wise Equity, with the transaction expected to close early 2023.

The GP's winning bid valued the company at more than EUR 300m and came about following an auction that involved the likes of Peak Rock, Stirling Square and Sun Capital, Apax France and Paragon on the sponsor side, as well as Italian bottle closure producer Enoplastic on the trade side, according to Unquote sister publication Mergermarket.

Wise Equity first considered the sale late last December and subsequently appointed William Blair to manage the sale process in April, as reported. The auction process launched several months later.

Growth plans are now being drawn up to help Tapi grow both organically and acquisitively to new regions, such as the UK, US and India, as well as well broadening product lines such as enclosures for perfumery, Enrico Biale, partner at the Stirling Square, told Unquote.

The company generates around EUR 120m in revenue with more than 20% EBITDA margins, he said. Under Stirling, it expects growth to reach up to EUR 300m-500m in revenue during its period of ownership.

Stirling saw the potential of the manufacturer given the increasing premiumisation of the alcohol industry, with enclosures and the wider packaging industry playing a key marketing role in this, he said.

The GP is currently deploying equity via Stirling Square Capital Partners IV, which held a final close in January 2020 on EUR 950m, surpassing its EUR 800m target. The firm registered its latest flagship fund in April 2022, as reported.

Tapi's revenues have nearly quadruples from the EUR 35m turnover that it generated in 2017 when Wise Equity acquired the company. This was brought about through changes in management team, M&A and investments in production capacity and efficiency, according to a press release.

Wise Equity acquired Tapi via its EUR 215m, 2015-vintage fourth fund. The vehicle typically deployed equity tickets in the EUR 5m-20m range for companies with enterprise values ranging from EUR 20m-200m, generating turnover in the EUR 40m-50m bracket, according to Unquote Data.

The GP sold fellow Fund IV portfolio company Trime in an SBO to 21 Invest in November 2022, also following a competitive auction process, as reported.

Company
Founded in 1999 in the Veneto region of Italy, Tapì produces packaging closures for the spirits, wine, condiments, cosmetics, beer and soft drinks sectors. It has production facilities in Italy, France, Mexico and Argentina

People
Stirling Square - Enrico Biale (partner).
Tapi - Roberto Casini (CEO)
Wise Equity - Stefano Ghetti (senior partner).

Advisors
Equity – Chiomenti (corporate finance); Gattai Minoli Partners (legal).
Vendor - William Blair (corporate finance); Simmons & Simmons (legal).