Quadrivio Private Equity Fund 3 has completed its second investment, acquiring a majority stake in Farmol, a Bergamo-based producer of aerosol and liquid based products for the household and personal care sector.
Since 1946, Farmol has served multinational companies in Europe through its four production plants. It has a turnover in excess of EUR80 million, 75 per cent of which is generated abroad. The company has exhibited a growth rate of about 20 per cent in the last year, with an operating profit margin of around 10 per cent.
The founders and the management team of the business will retain the remaining 30 per cent equity stake. Quadrivio will support Farmol in consolidating the market through deeper penetration of its existing client base. It will also support Farmol in international development, through the development of a new production plant in Slovakia, which will allow the company to expand its product offering and range.
With this second investment Quadrivio Private Equity Fund 3 continues to implement its investment strategy of acquiring majority stakes in Italian companies that are leaders in niche sectors. It leverages its network of international offices in New York, Hong Kong, Singapore and London.
Walter Ricciotti, CEO of Quadrivio Capital SGR, says: “Farmol is a perfect example of Italian manufacturing excellence; a highly specialised company chosen as the key supplier for its clients’ main brands due to its strong reputation for reliability. The company has great growth potential, and together with the current management we intend to implement a business plan aimed at seizing the consolidation opportunities in its core market. In continuing with the strategy we have pursued so far, we remain interested in SMEs seeking a financial and strategic partner to support them in both organisational improvement and international development, utilising the experience of value creation we have gained in the last 15 years.”
Alessandro Binello, chairman of Quadrivio Capital SGR, adds: “Quadrivio Private Equity Fund 3’s second investment demonstrates that the current Italian SME market has an abundance of excellent investment opportunities. As demonstrated by the results achieved with Fund 2, we are convinced that once the right target company has been identified, we are able to implement our industrial plans in a limited amount of time and realise significant returns for our investors.”
Carlo Innocenti, CEO of Farmol, says: “We believe that partnership with Quadrivio as both a financial and strategic partner represents a responsible and forward-looking choice. This partnership will enable the company to take the next step forward in its growth plan and provide it with the strongest positioning to seize the opportunity for market consolidation and expansion both in its domestic and international markets.”
Dario Innocenti, chairman of Old Mill Holding, says: “After 26 years we pass on control of Farmol; however, our family will remain involved alongside Quadrivio, both operationally and financially, to pursue a shared vision of ensuring continuity and respect for the industrial tradition of the company.”
Quadrivio’s legal advisers were Studio Legance Avvocati Associati and Schoenherr, financial due diligence was conducted by Ernst & Young and by the fiscal adviser Russo DeRosa Associati.
The founding family was assisted by Deloitte Financial Advisory and Cesare Vecchio for legal advice.
Banca Imi, Intesa San Paolo and Cariparma Credit Agricole participated as the financial sponsors.
