BC Partners and Bain Capital team up on big Fedrigoni deal; Palisade Real Assets buys Eco2 Management Services

Fedrigoni has nearly tripled adjusted EBITDA since Bain Capital bought it in 2017.

Morning Eurohubsters, Craig McGlashan here with the Dealflow.

The big news of the week so far was what could be one of the biggest deals of the year, as BC Partners joined Bain Capital Private Equity as owners of Fedrigoni.

Teaming up. Bain Capital announced on Tuesday that it has signed documents to enter into a joint ownership agreement for Fedrigoni, with BC Partners. Bain Capital originally acquired Fedrigoni in 2017. The deal is expected to close by the end of 2022 and values Fedrigoni at €3 billion, according to Reuters.

Headquartered in Milan, Fedrigoni specialises in the production of special papers for packaging, graphics, print and art, and in the conversion of paper and other materials into self-adhesive products.

Under Boston-based Bain Capital’s ownership, Fedrigoni has nearly tripled adjusted EBITDA through organic growth acceleration and M&A.

London-based BC Partners has developed a thematic focus on sustainability-driven growth in packaging, and the firm invested in IMA Group, a manufacturer of automatic machines for the processing and packaging, in February 2021. Fedrigoni is committed to reduce its carbon emissions by 30% by 2030, and to reach carbon neutrality by 2050.

“We are delighted by this opportunity to invest in Fedrigoni, a leader in sustainability focused packaging,” said Stefano Ferraresi, partner at BC Partners. “We are confident that this partnership with Bain Capital will create significant growth opportunities across the business. We share Marco’s vision and ambitious growth agenda and view Fedrigoni as the ideal platform to invest in this attractive segment of the market, with scope to continue to build on its leading positions in luxury packaging and labels and broaden its product portfolio through acquisitions and strategic partnerships.”

Green approach. Sticking with the environmental theme, Palisade Real Assets announced on Tuesday the acquisition of Eco2 Management Services (EMSL).

Headquartered in Cardiff, EMSL is an asset manager that develops and manages renewable assets from conception through to the ongoing operational asset management phase. Eco2’s activities include biomass, wind, solar, anaerobic digestion, greenhouses and other emerging technologies.

Established in 2021, Palisade Real Assets is a Sydney-based mid-market manager targeting investments that are adjacent to core infrastructure sectors.

“Embedding the asset management and development capability of the EMSL team into the Palisade Real Assets investment team will help drive high quality deal flow, enable operational value creation on complex assets that have multiple value propositions and ultimately deliver better investment returns for our investors,” said Stephen Burns, Palisade Real Assets CEO.

Material investment. We also saw a couple of similar deals on Tuesday in the materials manufacturing sector.

One Rock Capital Partners announced on Tuesday the completion of the acquisition of Prefere Resins Group from Silverfleet Capital. Silverfleet announced the sale in early April, this year.

Headquartered in Erkner, Germany, Prefere Resins manufactures adhesive resins and formulations used in engineered wood and insulation products, industrial applications, and other specialty materials.

Under London-based Silverfleet’s ownership, Prefere has taken steps towards its zero carbon agenda, and has created a pipeline of new environmentally attractive products.

“Prefere’s dedication to product innovation and commitment to its customers underscore its position as a market leader across the adhesive resins industry,” said Michael T Koike, partner at One Rock. “We are excited to continue to partner with management as we work to advance and promote the company’s sustainability initiatives in an effort to further maximise its potential.”

Precision. One Equity Partners announced on Tuesday that it has entered into an agreement to acquire Clayens NP from a group of investors led by Siparex, which sells its majority stake. Siparex, its co-investors and the management team will reinvest in Clayens as minority partners. The transaction’s financial terms were not disclosed.

Headquartered in Genas, France, Clayens provides processing services for polymers, composites and precision metal parts. The company’s capabilities include thermoplastics, thermoset injection, metalloplastics and precision metal machining and engineering.

Since Lyon-based private equity firm Siparex bought Clayens in 2019, the firm has completed four acquisitions and grown its turnover from €273 million to over €350 million.

“Clayens’ specialised expertise in producing highly engineered products that meet the most rigorous specifications is highly valued by multinationals operating in various end markets,” said Konstantin Ryzhkov, managing director, One Equity Partners. “This capability has produced a loyal customer base that gives the company a significant advantage in a competitive market.”

That’s it from me – speak to you on Thursday.

Cheers,

Craig