Progressio joins existing investors in ICF

Amedeo Goria
01 February 2016

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Progressio has joined Mandarin Capital Management and Private Equity Partners in the control-share of Industrie Chimiche Forestali (ICF).

ICF underwent a reshuffling of its shareholder base as part of the deal, which saw Progressio buying equity from Mandarin Capital and the management team; meanwhile Private Equity Partners did not see its stake diluted.

According to Private Equity Partners and Banca Imi, 90% of the company's capital is now held by Progressio and Mandarin Capital, with 10% owned by Private Equity Partners and the management team.

Progressio invested via its Progressio Investimenti II fund, which reached a final close on €205m in 2011.The vehicle targets companies within the €20-200m EV bracket and is now 80% invested.

The investment in ICF is expected to allow the company to increase its market position and to make new acquisitions.

Previous funding
Mandarin Capital and Private Equity Partners supported an MBO for ICF in July 2014, wholly acquiring the company from Buratti Holding.

Debt
Banca Imi arranged a mid- and long-term debt facility for the deal. Intesa Sanpaolo and Mediocredito Italiano will each secure a tranche of the funding package.

Company
ICF was founded in 1918 in Varese. Today ICF is headquartered in Marcallo con Casone, near Milan, and employs 120 people. The company produces fabrics and adhesives for the footwear and upholstered furniture industries.

In 2015, ICF generated a turnover of €70m, 65% of which was accounted for by exports. According to Italian publication Bebeez, the company recorded €10.5m of EBITDA and had €6.5m in net debt – the investors declined to confirm these two figures.

People
Progressio – Filippo Gaggini (CEO).
Private Equity Partners – Lorenzo Bovo (investment manager).
Industrie Chimiche Forestali – Guido Cami (CEO); Carlo Sironi (president).

Advisers
Equity (Progressio) – Studio Pirola Pennuto Zei & Associati (Legal); EY (Financial due diligence); Studio Russo De Rosa & Associati (Tax).
Equity (Mandarin Capital Partners) – Studio Eversheds (Legal); Studio Tremonti Vitali Romagnoli Piccardi & Associati (Tax).
Debt – Simmons & Simmons (Legal).