Alto reaps 3x money on Rancilio sale

Ali wholly acquired Rancilio, including the majority stake formerly held by the firm's management team.

Alto has reaped 3x money and a 20% IRR on the transaction. In 2007, the GP acquired a 16.67% stake in the company via a limited auction process managed by KPMG, according to unquote" data. The investor announced a buy-and-build strategy to drive the firm's growth.

The following year, Alto upped its stake to 31% via a capital increase, which allowed Rancilio to enlarge its stake in coffee machine manufacturer Egro Coffee Systems from 25% to 77%. The remaining 69% of Rancilio was retained by the company's management.

Seven companies remain in the portfolio of Alto Capital II following the latest divestment.

Company
Founded in 1927 and based in Parabiago, Rancilio makes professional espresso coffee machines. The company offers traditional and fully-automatic machines, the latter of which are marketed under the Egro brand.

Rancilio is present in five countries and retails in more than 100 through a broad network of distributors. The company employs 220 staff and reported sales totalling €58m in 2012, with EBITDA reaching around €9m. At the time of the Alto investment, sales totalled €34m with EBITDA standing at €4m.

People
Stefano Scarpis, Mario Visioni and Alice Barberini led the deal for Alto.

Advisers
Vendor – Credit Suisse, Alberto Tavecchio, Andrea Pravini, Marco Ardigò (Corporate finance); Gattai Minoli & Partners, Bruno Gattai, Gerardo Gabrielli (Legal).
Buyer – Studio Legale Pedersoli e Associati, Elio Marena (Legal): KPMG, Franco Fleming (Financial due diligence).

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• Topics
• Southern Europe
• Consumer
• Exits
• Italy
• Alto Partners