MCP II goes on with acquisitions, aiming EUR 300 million turnover

“Italian ceramic pole” financed by the private equity fund Mandarin Capital finalizes the purchase of Elios, the second company that joins the project and aims at least a new operation within the end of the year and another one within the first half of 2018: with a target of EUR 300 million turnover, the ceramic tile luxury pole, rigorously signed Made in Italy, aims to reach Milan Stock Exchange within 2019. 

According to Ansa, MCP II fund, through its vehicle Italcer, has acquired from Levoni family 100% of the shares of Elios Ceramiche right today. Graziano Verdi, previously President and CEO of Granitifiandre Group, chosen by Mandarin Capital to lead Italcer, explains: “Elios means a further step towards the creation of a reference player in the Italian ceramic tile comprehensive survey. This company is highly complementary to La Fabbrica in terms of sizes, placement and served geographical areas”.

Aggregation goes on after Elios and La Fabbrica, acquired last spring. Lorenzo Stanca, Mandarin capital Fund partner, said: “It is likely a new operation within this year, and another one next year”. In the meantime Italcer will build and start and new plant in Tennessee, in USA. Stanca explains: “We aim to reach a EUR 300 mln turnover group, able to export the best high-end ceramic tiles all over the world, from USA to China”. 

According to sector sources, not only private equity is showing interest in the project, but also investment funds that seem to have already pressed Mandarin and Italcer management for a further growth operation, leading the ceramic tile pole to Milan Stock Exchange. This cluster of companies could perform again what already happened to Granitifiandre under Verdi’s leadership: both Bank of America and Deutsche Bank had critical amount of shares and after five years on the Star segment of the Italian stock market (it was the first new entry to be listed in this segment reserved for stocks with high requirements), the company had achieved the top of profitability with a 34% Roe. Stanca explains: “We believe that luxury ceramic tile should have its legitimate place at the Stock Exchange, just like it happened to Granitifiandre under Verdi’s leadership”.

Italcer reaches EUR 75 mln turnover putting together La Fabbrica, company based in Castel Bolognese specialised in high-end quality tiles and Elios, where Elle ceramic activities converge as well. Timetable expects, with at least another acquisition, to reach 120 mln within this year and possibly 300 mln revenue in 2018.
In the meantime the integration within the group continues, the development of synergies and market placement. In a global perspective (in the USA there’s a strong request of big slabs Made in Italy and a plant in Tennesse can be the turning point) and with Elios. As Verdi explains: “Elios has a very remarkable history, a well-placed brand and represents in terms of industrial efficiency another strong point thanks to its skilled and competent work force”.

The Italian investment fund Mandarin Capital Partners II - MCP II, along with other major investors including Graziano Verdi at the helm of ItalCer, has announced the acquisition of La Fabbrica SpA, a high-end ceramic tile manufacturer based in the northern Italian town of Castel Bolognese.

Following the option to purchase Tagina announced by Graziano Verdi in the first few months of the year, this acquisition marks a further step forward in MCP II and ItalCer’s project to establish an Italian ceramic hub with the aim of “developing the markets that are most sensitive to the style and quality of Italian ceramics”.

Graziano Verdi also announced that construction will soon commence on a 4.0 factory in Tennessee, USA, with start-up planned by the end of 2018. “We want to develop a project in the high end of the market that will enable us to achieve good results abroad and strong growth,” commented VerdiWhile his goal is to “reach a turnover of 300 million euros within five years”, this figure may in fact be much higher depending on the external growth opportunities that arise.

Commenting on the acquisition of La Fabbrica, Verdi said: “La Fabbrica already produces high-end products in its facilities, whereas large-size panels are produced under licence by one of the top manufacturers in the segment, as is the case in the world of fashion.” He continued: “The brand is a world leader and in recent years has seen above-average growth rates in a sector that itself is growing much more rapidly than Italian and European industry as a whole.”

The goal is to support the international growth of the Company, leveraging Mipharm as a growth platform in the CDMO industry
Milan, 06th December 2016 - Mandarin Capital Partners II (MCP II)  has successfully acquired a majority stake in the share capital of Mipharm Spa, an Italian leading Contract Manufacturing Organization (“CMO”) engaged in the manufacturing and packaging of a wide range of Finished Dosage Formulations (“FDFs”). The Group also provides product development services and clinical studies based on customer requirements and/or in house R&D.
MCP II total initial investment amounts to € 16.4 million, with the goal to increase the total investment with acquisitions of selected targets. Cassiopea Partners (Buyer’s financial advisor), Euteam (company owned by Mr. Maurizio Silvestri - ex CEO of Euticals) and some of Mipharm’s Managers invested alongside MCP II.
Current CEO Mr. Pierangelo Costa will continue to manage the company. Mipharm has posted sales of around € 37.9 m in 2015, with approx. 45 clients (Big Pharma, Global Generic companies, other pharmaceutical companies) located in 30 countries (i.e. in 2015 Exports account for about 65% of Revenues).
The investment is aimed at supporting international growth of the Company, leveraging on MCP II’s network and business development channels in the European and Asian markets.
Cassiopea Partners and the lawyersof R&P Legal of Milan acted respectively as financial and legal advisor for MCP II; Banca Popolare di Milano (BPM) and Banca Popolare Emilia Romagna (BPER) acted as financing banks providing the acquisition and M&A lines. The seller was supported by Rothschild as financial advisor and by the lawyersof Bonelli Erede Pappalardo as legal advisor.
The due diligence process was conducted by Ernst & Young (financial and tax areas), R&P Legal (legal area), Goetz Partners (business) and Tauw (Environmental).
Mandarin CP