Arrow Global Group plc, a leading private debt and distressed credit alternative asset manager in Europa listed at the London Stock Exchange, stroke two hits in Italy in the last few days and announced an agreement to acquire 100% of distressed and NPLs investor Europa Investimenti spa for 62 million euros and the acquisition of Rome-based independnet Npl services Parr Credit srl for 20 million euros (see here the press release).
Arrow Global already owns a credit servicer in Italy: in 2016 it bought Zenith Service spa, a leading master servicer to Italian securitizations for 17 million euros (see here a previous post by BeBeez), which has been working together with Europa Investimenti on some securitizations in the last few years. Arro Global’s ceo Lee Rochford said there were growing opportunities in distress credits in Europe last Summer.
Parr Credit, founded by Raimondo Romitelli who will keep on managing the company, has been valued about 7x 2017 normalized ebitda which was about 3 million euros after 17.5 millions in revenues.
As for Europa Investimenti, Arrow Global will buy stakes from Consival srl and Camargo srl (owned by Europa Investimenti’s managers) and will invest 11.5 million euros of new equity for a total consideration of 62 million euros. On top of that a maximum of 19 million euros earn-out will be paid if the company will reach some specific results in the next future. Europa Investimenti posted 5 million euros in ebitda in 2017 and was valued at a 10x ebitda multiple in terms of equity value (including 14 million euros of net cash).
US turnaround private equity firm Avenue Capital used to own a 28.3% stake Europa Investimenti’s capital and had signed an co-inestment agreement up to 150 million euros for investments in Italy (see here a previous post by BeBeez and the press release). The last deal together is dated May 2017 and it’s realtive to the aquisition of Selcom Elettronica (see here a previous post by BeBeez).
However after that Europa Investimenti bought back the stake from Avenue Capital as it is understood reading a document by Mediacontech, one of Europa Investimenti’s portfolio company listed at the Italian Stock Exchange. In the change of shareholders’ agreement is actually written that now Europa Investimenti owns treasury equal to a 28.3% stake.
Europa Investimenti will still be managed by actual managers or Stefano Bennati (ceo), Armando Ranucci (coo), Daniele Patruno (Co-Head Npl), Emanuele Urbinati (Co-Head Npl), Federico Silva (business development) e Claudio Nardone, ceo of Vegagest sgr, an open-end fund manager that Europa Investimenti bought ( 74%) last September from previous shareholders banks in the framework of a debt restructuring agreement of one real estate fund managed by the company (see here a previous post by BeBeez).
Europa Investimenti also owns Cose Belle d’Italia spa, a holding company owner of some “made in Italy” representative companies: Cose Belle d’Italia Media Entertainment, Alberto Del Biondi, Vismara Marine, FMR, UTET Grandi Opere, Arte del Libro, Industria del Design, Imbarcazioni d’Italia (with Apreamare and Maestro brands), Antica Tostatura Triestina, Maestria, e i marchi Laverda Collezioni e Nerocarbonio. Cose Belle d’Italia also built an entertainment pole, owning magazines and websites such as Amadeus, Il Mondo del Golf Today, Sci-Il Mondo della Neve, La Madia Travelfood, Belvivere e Watch Digest.
