Fondo Italiano sells Eco Eridania in first divestment

Amy King
10 June 2014

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Italy's Fondo Italiano di Investimento has completed its first divestment, selling its stake in waste management firm Eco Eridania to the company's existing shareholders, including Xenon Private Equity.

Xenon and the company's founders become majority shareholders in the business, with further acquisitions planned over time.

The exit is the first completed by Fondo Italiano, which has completed 37 direct investments and 19 commitments as a fund-of-funds since its inception in 2010.

The GP recently announced a change in strategy, with an increased focus on fund-of-funds activity in the venture capital and private debt segments.

Previous funding
Fondo Italiano committed €10m to the company in August 2011 in exchange for a minority stake. The capital injection was designed to support the firm's acquisitive growth, on both a national and international scale.

In November 2012, Xenon entered the shareholding structure via a capital commitment of €14.3m, completed in partnership with Fondo Italiano. The fresh funding supported Eco Eridania's bolt-on of Team Ambiente, creating a company with a turnover in excess of €54m. Xenon drew capital from Xenon Private Equity V, which closed on €150m in 2009.

The following year, the duo injected a further €3.7m into the company to support the acquisition of three companies: Paderno Energia, Elettrochimica Carrara and Technoplus, the waste management arm of Ghi.be.ca.

Fondo Italiano has not released returns figures, though it has described proceeds generated from the sale as higher than originally anticipated.

Company
Headquartered in Arenzano, Genoa, Eco Eridania is active in the field of waste management, specialising in its collection, transport and storage. It disposes of medical waste (mainly from hospitals) and industrial and hazardous materials through the use of incineration plants.

Under private equity ownership, the company's turnover has risen to around €70m, with headcount increasing to around 340.

People
Gabriele Cappellini is managing director of Fondo Italiano.