Funds advised by European private equity fund PAI Partners are to purchase a 78.39 per cent stake in Marcolin, an Italian eyewear manufacturer, at a price of EUR4.25 per share from family and private owners in a proprietary primary LBO transaction in one of its core investment sectors.
On completion, PAI Partners will promote a mandatory public tender offer for the remaining equity, which is publicly traded, at EUR4.25 per share, with the aim of de-listing the company. The transaction is expected to close in late November.
Marcolin is one of the largest and fastest growing eyewear manufacturers in Italy and is a global producer of glasses and sunglasses for such brands as Tom Ford, Roberto and Just Cavalli, Diesel, Montblanc, Tod’s, Balenciaga, Swarovsky, Timberland, DSquared2 and Kenneth Cole. The company was founded by Giovanni Marcolin in 1961 and is headquartered in Longarone, Italy. It has offices across Europe and in the US, Hong Kong, Japan and Brazil.
The company had sales of EUR224.1m and EBITDA of EUR34.2m in 2011, up nine per cent and 14 per cent respectively from the previous year.
PAI Partners will support Marcolin through its next phase of growth, investing in the expansion of the company’s international footprint and long-term contracts with major designer brands.
The consumer sector is one of PAI’s core target areas for investment, having invested with consumer brands including Gruppo Coin, an Italian fashion retailer; The Nuance Group, the third largest airport duty free retailer worldwide; United Biscuits, the largest biscuits manufacturer in the UK; and Yoplait, one of the top 20 global consumer brands.
Previous owners and management are to remain shareholders in the business.
Raffaele Vitale, partner at PAI Partners, says: “We are delighted to invest in Marcolin which is a leader in its sector with excellent growth prospects and is a classic PAI investment in one of our core areas of expertise and focus. We see excellent potential to develop the business, both in Europe, the US and particularly in emerging markets, where demand for these products is rapidly increasing.”
Giovanni Marcolin Coffen, chairman of Marcolin, says: “PAI Partners has a proven track record of working with businesses such as Marcolin. I am confident that they will add significant value to the Company, supporting our progression as we become increasingly international and continue to build on our strong position in this market.”
