Moleskine: a jewel in Italy's crown

The figures speak for themselves. Since Syntegra acquired a 75% stake in the company for around €60m in 2006, with the support of a senior debt package from Interbanca, sales have grown from €20.8m to hit €66.7m in 2011. EBITDA has gone from €8m to €29.1m in the same period and the company is now present in more than 90 countries. With a cash-flow conversion of around 90%, Moleskine continues to go from strength to strength.

"There has been an annual EBITDA growth of 28% on average," Syntegra partner Marco Ariello told unquote". "Despite the macroeconomic turmoil, this company could complete a really successful IPO because it's so international, it has such high pricing power, high growth, high profitability and no real comparable competitor," he adds.

In 2011, the entry of Index Ventures into the company's shareholding saw Syntegra's stake reduced to 67.7%, in a deal that valued the company at around €200m. Index acquired a 15% stake, with the founders retaining a 10.6% share and management retaining the balance.

"Up until last year we said we weren't up for sale," says Ariello. "We wanted to continue a number of new projects, including e-commerce, extension to non-paper products and retail. By the time we started the preparation for the IPO in the middle of last year, the visibility of the brand had grown and we had seen a lot of broad interest from buyers. But our preferential and primary route remains the IPO," he explains.

The news will no doubt have fallen on the disappointed ears of several GPs, reported to have circled the firm. But this exit route is concrete. "The IPO is the way to go for a variety of reasons. Firstly, it will add to the company in terms of ability to accelerate its development plans, brand awareness and retaining high-profile professionals. But it is also positive for us because we will benefit from the future growth, which will be strong."

Those who have followed the company closely will have asked when exactly the company will begin its next chapter. And with reports flying since the middle of last year when UBS, Goldman Sachs and Mediobanca entered into exit plans, the IPO is undoubtedly one of the most anticipated events in the Italian private equity calendar. "It will happen in 2013 for sure, but it depends on the market," explains Ariello. "We have the election in Italy in February so we will monitor that closely and whether or not that will improve the current situation or if, in the short term, there will be some turmoil. Other than that, the company is ready and will continue filing. But 2013 will be the year," he confirms. No date in the diary yet, but watch this space.

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