Savio Macchine Tessili, a leader in the yarn finishing machine sector, issued 85 million euros in bonds in a private placement reserved to direct lending funds managed by Hig WhiteHorse and Tikehau Capital, MF Milano Finanza, writes today, adding that the bond has a 5 years maturity and that the deal is aimed at financing the group’s international growth in a sector where tehcnological innovation is crucial.
Since 2011 Savio has been controlled by Alpha Private Equity, led by the managing partner Edoardo Lanzavecchia, while the company was founded in 1911 by Marcello Savio. The company is operating worldwide in the manufacturing and marketing of automatic winders, continuous shrinkage and bulking winders, two-for-one twisters, and rotor spinning frames with factories in Italy, China and India and in 2016 reached 346 million euros in revenues, almost all produced abroad.
Hig and Tikehau Capital were supported by Studio Legale Gattai, Minoli, Agostinelli law firm, while Alpha Private Equity was advised by Pedersoli Studio Legale. Essentia acted as debt advisor to Alpha Private Equity.
Alpha had bought Savio out in 2011 on the basis of a 300 million euros enterprise value, including 160 million euros of loans issued by Intesa Sanpaolo, Banca Popolare Milano, Banco Popolare, Friuladria, Meliorbanca di Bper e Creval. Alpha bought a 75% stake in Savio’s capital and was joined by Intesa Sanpaolo with a 10% stake. That year the company reached 460 million euros in revenues. At the beginning of 2014 Savio was said to be mulling an ipo son the basis of an enterprise value equal to 6-7x FY 2013’s ebitda that was 82 millions that year after 370 million euros in revenues.
As for Tikehau this is the fourth direct lending deal in Italy after investments in debt issued by GF, Marlink -Telemar and Dedalus. Tikehau Capital ia a French management and investing company listed on Euronext paris with 10.3 billion euros of assets under management, active in the private debt, real estate, private equity and liquid strategies sectors also through its subsidiary Tikehau Investment Management. Tikehau is led in Italy by country manager Luca Bucelli.
As for Hig WhiteHorse, this is instead the second deal in Italy after the investment in Gotha Cosmetics, supporting the buyout by Capvis fund. Hig WhiteHorse is a Hig Capital’s division focusing on senior, unitranche and subordinated debt issued in for refinancing, development, m&a and recap purposes. For the Savio deal was in charge the director Guido Lorenzi.