Italy’s biggest private equity firm Investindustrial bets on the United States for business growth of its portfolio companies and strenghtens its New York office appointing Michael Karangelen (ex TowerBrook Capital Partners, Brera Capital e Stolberg Capital Partners) as new senior principal and Investindustrial Inc ceo (see qhere the note to investors), MF Milano Finanza, writes today. While John C. Mowinckel, who has been leading the New York office in the last six years will come back to Europe.
Investindustrial’s managing principal Andrea Bonomi explained MF Milano Finanza that “thanks to Michael Karangelen and other new professionals who will join our NY office in the next few months we will increase our m&a activity in US at oure European levels. The US market is actually more and more important for our portfolio companies that will be able to grow here form a commercial side too through not conventional channels. We actually have a team led by Carlo Privitera able to support our companies in their technological projects aiming at business development”. And “all Italian companies in our portfolio are now working at expanding their presence in the US and target a couple of add-on acquisitions in the next 12 months”, Mr. Bonomi said.
There is no worry then due to new US president Donald Trump: “I do not believe there will be any negative impact for our portfolio companies, Trump is a pro-business man”, Mr. Bonomi stressed.
At the moment Investrindsutrial’s portfolio companies are working at 3-5 small add-ons such as the one made by design enlightment company Flos on Lukas some months ago, and to one big deal such as the one Italy’s chemical group Polynt made on US CPP and the merger that Polynt itself is finalizing with Reichhold, which will bring to birth a chemical giant making 2 billion euros in revenues.
Among Investindsutrial’s portfolio companies most active on the US market there are also Artsana, B&B Italia, Valtur and Spanish Goldcar. Investindustrial’s portfolio companies have more than 1.3 billion euros revenues in North America, with 21 manufacturing plants, a further 22 flagship stores or commercial offices and approximately 1,400 employees. As at the end of 2015, an impressive 46% of the overall growth of the portfolio companies since entry has come from North America.
For current portfolio companies such as Polynt-Reichhold, Aston Martin, B&B Italia and Chicco (Artsana), the US is the single largest market. For others such as Sergio Rossi, Flos and Goldcar, it is a market with significant expansion potential. Ducati and Permasteelisa are additional examples of prior investments that saw transformational growth in the US during Investindustrial’s ownership.
As for FY 2016 expected results, “we think that the positve trend for our portofolio companies will go on and that the sole organic growth will be doble digit in the US”, Mr, Bonomi concluded.