21 Partners is to acquire Poligof, a manufacturer of backsheet film for hygienic disposable products (baby diapers, feminine hygiene and adult hygiene products), through the second investment of the recently raised 21 Investimenti III fund.
Thanks to its technical know-how, Poligof is the Italian leader and one of the top three European players in its market, boasting two state of the art production facilities in Northern Italy. Poligof’s addressable market presents high resilience in Europe and unexploited growth opportunities in emerging markets. In the last three years Poligof was able to double its turnover reaching €M 100, of which 70 per cent generated by exports.
21 Investimenti, after establishing a close relationship with the current, experienced CEO, stood out as the ideal partner able to solve the founding family’s generational change issue and lead the next phase of company development. The primary, MBO transaction will see 21 Investimenti acquiring an 80 per cent stake, with the management holding a 10 per cent stake and the founding family reinvesting for the remaining 10 per cent.
21 Investimenti will strive to accelerate the company’s growth, supporting the management team in line with the following two drivers:
Organic growth: reinforce relationships with existing clients and establish strong and long lasting relationships with new clients in order to increase European market share;
International expansion: expand into fast-growing emerging markets, with India and Russia already on the radar screen.
21 Investimenti will also work towards improving company efficiency, focusing on flexibility and time to market, while rationalising production costs.
Alessandro Benetton (pictured), Founding Managing Partner of 21 Investimenti, says: “With the recent investment in SIFI, leader in the ophthalmic market, and now the investment in Poligof, we will already have two portfolio companies in the fund 21 Investimenti III, which is currently finalising fundraising and is going to reach its final closing in the coming months above the original Euro 300 million target. We are enthusiastic to continue the business plan launched by Poligof’s management in the last few years and guide it in its path to become a worldwide leader in the backsheet film market, a position that it most certainly deserves for its management team’s expertise, technology and passion.”
