Industrie Confezione Tessili (Italy) - Jan 2008

Nord Est Investment Partners (NEIP) has exited its 33.79% stake in textile manufacturer Industrie Confezioni Tessili SpA (Incotex) in a deal generating an IRR of 37% and a 3.5x money multiple. The multiple paid was significantly higher than the entry multiple. NEIP contributed to the positioning of the company on the international radar, as well as to the implementation of reporting and budgeting processes. Throughout the investment period, several external investors showed interest in the company, but agreements failed to materialise. NEIP’s exit was marked by the scheduled conclusion of the business plan.

Deal history

NEIP acquired its stake in Incotex in 2003. The expansion capital deal came at a time when the company was seeking to diversify its product range and internationalise its production. Mira-based Incotex was founded in 1951 by Carlo Campagno. Currently the Incotex group includes the Montedoro, Zanone and Glanshirt brands which are commercialised under the Slowear umbrella brand. The company has two production plants in Romania and Portugal and two new commercial subsidiaries in New York and Tokyo. Incotex projects a turnover of €55m with an EBITDA of €9m for 2007. The company currently employs around 450 people.

Advisers

Equity - Finint & Partners S.r.l., (Financial Due Diligence)Equity - Sciumè & Associati Studio Legale e Tributario, Federica Greggio (Legal)Purchaser - Simmons & Simmons, Paolo Gnignati (Legal)Purchaser - Studio Ferrin e Associati, Paolo Ferrin (Financial Due Diligence)

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• Topics
• Southern Europe
• Exits
• Consumer
• Italy
• Management buy-back