The Public Investment Fund (PIF), a sovereign fund of Saudi Arabia, has signed an agreement to acquire a minority stake in Horacio Pagani spa, the parent company of Pagani Automobili spa, the manufacturer of iconic supercars (see the press release here). The stake acquired is said to be around 30%.
PIF therefore joins in the capital of Horacio Pagani spa the current minority shareholders Nicola Volpi (former managing partner of Permira in Italy) and Emilio Petrone (ceo of Italian betting group Sisal), both directly and through their investment vehicle Movidea srl, while the Pagani family (both directly and through their Geminis srl holding company) will continue to hold control of the company as the majority shareholder. At the same time, Mr. Horacio Pagani, an Italian-Argentine entrepreneur, founder, ceo and Chief Design Officer, will maintain a leadership position and a central role in the company.
UBS Investment Bank acted as Pagani’s exclusive financial advisor. Withers Studio Legale acted as legal counsel to the selling shareholders. Rothschild & Co and Freshfields Bruckhaus Deringer acted as financial advisor and legal advisor to PIF, respectively.
Founded in 1992, and based in San Cesario sul Panaro (Modena), Pagani is today one of the most exclusive hypercar brands in the world. A pioneer in the world of composite materials in the hypercar market, Pagani has extended its knowledge to the use of the most sophisticated materials, including the most advanced metal alloys, creating over the years an engineering reality of absolute importance, which has allowed the company to design in all respects its cars, approved globally.
Horacio Pagani spa closed 2020 with a production value of 122 million euros, 110.3 million euros of consolidated revenues, 41.5 million of ebitda and net liquidity of 81.5 million (see here the Leanus analysis, after registering for free), while Pagani Automobili spa closed 2020 with 106.9 million euros in revenues, an ebitda of 42.2 millions and net liquidity of 63.8 millions (see here the Leanus analysis).
PIF’s investment will help finance the growth path already started in recent years, continue its path of innovation in the hypercar market and explore new growth opportunities in the lifestyle segment with the launch of Pagani Arte.
Nothing more has been revealed about the project, but it should be remembered that Pagani already in past years has added his name to that of various artists for the packaging of his annual calendar. For example, for 2021 three important artists from the Argentine school have been hired: Alfredo De la María, Jorge Ferreyra Basso and José María Villafuerte, who, through their paintings, wanted to celebrate the memorable performances of some Pagani hypercars of the past, of the present. and the future, from the first Zonda to the more recent Pagani Imola, passing through the Huayra Roadster BC and the 2009 Zonda R (see the press release here).
Horacio Pagani commented: “Since its inception Pagani has boasted partnerships with the best players in the sector, as we believe that excellence can only be achieved through teamwork. This is demonstrated by the multi-year relationships with our technology partners, undisputed leaders in their respective sectors, who will continue to play an important role in Pagani’s future. Today we are proud to announce this important partnership with PIF, a key step in our long-term development strategy, which includes significant investments to ensure that our next hypercars continue to deliver unique thrills, regardless of propulsion technology. PIF is the ideal partner to further consolidate Pagani’s positioning as an iconic brand in the world of hypercars and to support its expansion strategy in the lifestyle sector”.
Chaired by Mohammad bin Salman bin Abdulaziz Al Saud, crown prince of the Saudi Crown and Deputy Prime Minister of Saudi Arabia, PIF today has approximately 430 billion dollars in assets under management, according to the SWF Institute. PIF is the economic engine of Saudi Vision 2030, a strategic plan for the transformation of the country launched in 2016 by Mohammad bin Salman bin Abdulaziz Al Saud to renew the international image and economic model of Saudi Arabia, making it less and less dependent on oil and diversifying investments, thanks to the immense liquidity accumulated with black gold in recent years, much of which has been channeled into the PIF. And the fund now considers the Entertainment, Leisure and Sports sectors to be among the most interesting in which to invest.
We recall that last March PIF was said to be as one of the most interested potential investors in Italy’s Inter soccer team (see here a previous article by BeBeez).