MANDARIN CAPITAL PARTNERS HAS ACQUIRED NERONOBILE

The goal is to support the international growth of the Company through MCP’s Asian and European networking channels together with the implementation of a buy and build strategy. 

Milan, October 4th, 2019 – Mandarin Capital Partners III (MCP III) has acquired a majority stake in the share capital of Neronobile Srl, an Italian company engaged in the production and distribution of a full range of capsules and machines for coffee and other infusions.

Founded in 2003 and based in Northern Italy near Vicenza, Neronobile has posted €23m sales in 2018 with a robust growth in the latest 4 years (CAGR 26.1%), fueled by the expanding trend of compatible coffee capsules.

The investment is aimed at supporting the international growth of the Company, leveraging on MCP III’s network and business development channels in the European and Asian markets. Furthermore, Neronobile represents a perfect platform for a buy and build strategy aimed at creating a fully-integrated group with control over all segments of the coffee industry value chain. Negotiation with target for potential add-ons are already under way.

The founder and CEO Mr. Giampaolo Furia will maintain 33% of the shares of Neronobile and will continue to manage the company. Furthermore, Mr. Carlo Salvadori (a former top manager of Nestlè and Lavazza, with a deep experience in the coffee industry) will enter Neronobile’s Board of Directors.

Giampaolo Furia, Enterpreneur and CEO,said: ”Me and my family welcome MCP as a new financial partner, and we are eager to start working with MCP’s professionals to bring the company to the next level, tapping into the opportunities offered by the global market”

Lorenzo Stanca, Managing Partner of MCP, said: “Neronobile is an extremely dynamic company, led by a brilliant entrepreneur, with a huge growth potential in international markets. For these reasons we are delighted to invest in Neronobile as the first deal of the new fund Mandarin Capital Partners III. We will fully support Giampaolo and his management team in the implementation of the business plan, as well as in the integration with complementary industry players”.

MCP was assisted by LMCR Law Firm, while the due diligence was conducted by Deloitte Transaction Services (financial due diligence), Deloitte Studio Tributario (tax and transaction structuring), Goetzpartners (business due diligence) and Bilma (HSE and ESG due diligence).

The seller, Giampaolo Furia (who remained invested in the Company) has been assisted by M&C Partners, as a Financial Advisor, and by Pavia e Ansaldo Law Firm.

Equita Private Debt Fund invests alongside MCP in the implementation of Neronobile’s strategy.

Mandarin Capital Partners (“MCP”) is a private equity platform that invests mainly in Italian SMEs, creating value by targeting their expansion in global markets.

With an established presence in the APAC region, MCP is capable to offer a crucial support in markets with high growth potential. Such international focus is not restricted to the Far East: the 16 companies in which MCP invested, have done 36 add-on acquisitions so far, mainly spread across US, Western Europe and China.

MCP I (the first fund launched in 2007), realized ten investments, all in profit, with an average money multiple of around 2x. MCP II (the second fund launched at the end of 2013), has invested in eight companies  - of which five now fully divested returning 39% and over 2.2x MOC, and has returned to its LPs all money invested within four years. The current portfolio companies of MCP II are: Mipharm (pharma CMO), Italcer (high-end ceramic tiles) and IFFH (frozen food).

At the beginning of August 2019, MCP has held a 148 million euros first close of Mandarin Capital Partners III, targeting a final fund size of 250 million euros. In line with MCP’s proven investment strategy, the new fund will typically invest 15 to 20 million euros equity tickets in a wide range of sectors, including high value added industrial goods, pharma, medical devices, cosmetics and food.

Over the last 24 months MCP has realized 2 buy and build projects (Italcer and IFFH) and 4 successful exits (ICF, Ladurner, Marval and Hydro Holding). Neronobile is the first Investment of Mandarin Capital Partners III Fund.

First Close of Mandarin Capital Partners III 

Mandarin Investment Management S.A. is pleased to announce that Mandarin Capital Partners III SCA RAIF (“MCP III”) completed its First Close on 9 August 2019 for a total amount of €148M from existing, and new, Italian and international investors.  This represents c. 60% of the fund target size (€250M).  Several existing and new LPs are currently at various stages of due diligence in relation to MCP III, and a second closing is targeted to take place in early 2020. MCP III will continue the same strategy of the previous two funds by investing into Mid-Market Italian businesses.

MCP III is also in the process of completing its first two investments, one in the coffee business and the other in the market of metal accessories for luxury bags and belts.  Both are scheduled to be completed within the next month.  

The predecessor fund, Mandarin Capital Partners II (2013), has completed eight investments with five already fully divested returning 39% and over 2.2x MOC, and has returned to investors all money invested within four years.  Overall, MCP has made eighteen investments since inception in 2007, with no losses.

MCP has been advised by Lancea LLP and Cebile Capital, both headquartered in London, in its fundraising activities.

August 2019

Press release

New frozen foods group formed in Genoa

Genoa will be home to the newly incorporated IFFH – Italian Frozen Food Holding SpA, through which two established players in the frozen food market will be joining forces: Appetais SpA, which has a local track record of over 20 years as a producer of ready meals, and AR Srl (a joint venture between Appetais and Roncadin SpA of Meduno), a leading producer of gluten-free and other “free-from” food products.

IFFH SpA was promoted by Mandarin Capital Partners (MCP), a leading private-equity fund that invests in mid-sized Italian companies, supporting their growth on international markets, with the goal of driving the expansion of the group through acquisitions and support for organic growth.

Based in the Bolzaneto district of Genoa, Liguria's revitalised food centre, IFFH's two current production facilities will house over 200 employees, turning out more than 20 million units expected to generate initial sales of €40 million, 20% of which outside of Italy.

Appetais SpA and AR Srl are known for their ability to supply and export authentic fine Italian cuisine to the world, offering a wide range of ready meals and gluten-free and other free-from food products.

Leveraging its extensive local and international presence, recognised product quality and constant research and development efforts, and with the support of the private-equity fund MCP, IFFH plans to create an Italian frozen foods platform for mid-size companies offering a range of complementary articles and products. The ultimate goal is to reach the size and strength needed to compete with the major players in the frozen foods market at the international level and to take advantage of the widespread opportunities for expansion currently offered by the market.

The group, which is examining various strategic acquisitions, is set to pursue significant expansion of its product portfolio and sales in the coming years. Francesco Palau, currently Chairman of Appetais, will be Chairman and Chief Executive Officer, whereas Dario Roncadin, CEO of Roncadin SpA, will be Director in charge of Business Development and Marcello Mucedero will be the group's General Manager.

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Mandarin Capital Partners (“MCP”) is a private-equity platform that invests primarily in mid-size Italian companies, seeking to create value through expansion on international markets.
MCP's deeply rooted presence in the Far East allows it to offer target companies decisive support in markets with strong growth potential. However, its focus on international growth is not limited to the Far East. The 15 companies in which MCP has invested to date have completed 34 acquisitions, primarily in Western Europe, China and the USA.

MCP's first fund was launched in 2007, has undertaken ten investments, all sold at a profit, and has achieved a total return of approximately twice the amount invested. Its second fund, launched in late 2013, has undertaken eight investments, four of which have been sold at a return of twice the initial investment.

for information

Anna Alessandrini
Appetais SpA
Tel. +39010 7267022
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Mandarin CP