Alcedo and Wise score 6x on JK Group trade sale

José Rojo
26 October 2015

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Italian GPs Alcedo and Wise have scored a 6x return with the sale of their joint 72% stake in Como-headquartered ink manufacturer JK Group to Dover Corporation.

According to the vendors, the trade sale values JK Group at €346.5m, equivalent to 10.3x its pro-forma EBITDA for 2015.

The trade sale will see JK Group incorporated into NYSE-listed Dover Corporation; the asset will operate as a stand-alone company within the corporate's Engineering Systems subsidiary.

JK Group's new parent already made headlines as a strategic buyer in September, when it acquired the dispenser and system business units of Motion Equity Partners-backed Tokheim for €425m.

The exit of Alcedo's and Wise's combined 72% stake comes three years after they acquired enamel and paint producer Kiian, previously held by Sofipa Equity Fund. The GPs proceeded to use the asset, then posting €49m in revenues, as the foundation for a series of acquisitions eventually leading to the creation of JK Group.

In May 2014, the company bolted on TW Graphics, which had been in charge of distributing Kiian's products in the US. This was followed by the purchase and subsequent merger with Como-headquartered J-Teck 3, which saw Italo Mariani and Enrico Grasselli, founders of J-Teck 3, join the management team.

In July 2015, JK Group acquired the industrial operations of pigment ink specialist Sawgrass Technologies.

In parallel with the bolt-on strategy, JK Group has reportedly witnessed significant organic growth and remained profitable during the period. A focus has been placed on boosting production capacity to accommodate rising demand and internationalisation via a strengthened commercial network.

Company
JK Group was built up via a series of acquisitions starting with Kiian, an enamel and paint producer founded in the 1940s. The current group manufactures and commercialises digital sublimation inks for graphic and textiles purposes. Based in Novedrate, Italy, the company services 90 countries worldwide via the aforementioned office and additional facilities in Tennessee, the US and Shanghai.

People
Alcedo and Wise were represented by partners Marco Guidolin and Valentina Franceschini, respectively.

Advisers
Equity – Ethica Corporate Finance (Corporate finance); Simmons & Simmons (Legal); Studio Spadacini (Tax).