Nadella (Italy) - Jan 2008

unquote
01 January 2008

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Mid Industry Capital has acquired a 60% stake of industrial components manufacturer Nadella in a leveraged buyout deal valued at €47m. The remaining 40% stake is retained by the former owners Overseas Industries. Mid Industry contributed €9m (part in equity and part in shareholder loans) and Overseas Industries another €6m (also part in equity and part in shareholder loans), representing approximately 35% of the total value. The deal took four months to complete and was originated by the investors. This is the second operation closed by Mid Industry in the past eight months following its participation in Euromobiliare SIM alongside JC Flowers.

Debt

MPS Capital Services supplied financing for €27m as senior debt and the vendor supplied the remaining €5m as a deferred payment subordinated to the financing (vendor loan).

Company

Milan-based Nadella was founded in 1930 in France and also operates an important office in Stuttgart. It specialises in the manufacture of mechanic precision components used in the robotics, packaging and railway sectors. The company reported a turnover of €40m in 2007 and an EBITDA of 20%. Sales are equally divided between Germany and Italy except for 5% realised in China. The company employs 100 people. The investors plan to help the company increase its market share both through internal and external growth actions.

People

Gian Maurizio Argenziano and Pier Andrea Comoglio led the operation for Mid Industry.

Advisers

Equity - Carlino Pozzi & Co, Giovanni Carlino (Other Due Diligence)Equity - Ernst & Young, Andrea Guerzoni , Stefano Bognando (Financial Due Diligence)Equity - Montanari e Associati, Alberto Montanari, Gianpiero Miccoli (Legal)Equity - Studio Pirola, Andrea Vagliè, Fabio Oneglia (Other Due Diligence)Vendor - Vita Samory,Fabrini e Associati, Luca Fabbrini, Matteo Bascelli (Legal)

Sourced from: Southern Europe unquote" 72 (Mar 2008)