Alpha Private Equity, through its sixth fund, acquired a 60% stake in the capital of Pavan, among the worldwide leaders in the design and engineering of technologies and integrated product lines for cereal based food (download here the press release).
The deal was conducted through Alpha’s newco New Food Technologies spa, which acquired 100% of Pavan Group from its parent holding company Idea Cinquanta srl, which in turn is controlled by Pavan’s chairman Angelo Ferro and pavan’s ceo Andrea Cavagnis and partecipated by Italy’s private equity operator Imi Investimenti sgr with a 10% stake. Idea Cinquanta had partially reinvested in New Food and now holds a 40% stake.
Founded in 1946 and headquartered in Galleria Veneta (Padua), Pavan is a global supplier of industrial solutions, from the handling of raw materials to the final packaging and operates in the business through eight brands: Golfetto Sangati, Pavan, Mapimpianti, Montoni, Toresani, Stiavelli, Dizma and Pizeta.
The group reached 158 million euros in consolidated revenues in 2014, 17% up from 135 millions in 2013, when it reached 23.45 millions in ebitda with a net financial debt of 12.2 millions.
Alpha, led in Italy by the senior partner Edoardo Lanzavecchia, and Pavan’s management who will keep on managing the company, will then finance the development of Pavan’s leadership in the market both with organic growth and by m&a activity.
Alpha has been advised by Pedersoli e Associati law firm and by Essentia Advisory on debt issues, while Idea Cinquanta has been supported by DLA Piper law fimr.
Imi Investimenti sgr invested 8 million euros in 2011 for its 10% stake in the company when Pavan had been valued 5.6x its 2010’s ebitda of 17.2 million euro, after consoidated revenes of 107 millions (see here the 2011’s Private Equity Monitor by Castellanza University).
In Italy Alpha Private Equity already owns stakes in the following companies (see here Alpha’s italian portfolio): Caffitaly (leading manufacturer of best-in-class combined coffee systems machines and capsules), Remazel Engineering (designs, engineers and manufactures special equipment for the offshore and onshore oil & gas sector) and Gruppo Savio (World leader in the production of winding machines and quality control devices for the textile industry).