Gruppo Fabbri Vignola is a leading international manufacturer of wrapping machines and films for the fresh food packaging industry
The company is present in over 70 countries, with over 500 employees, has 3 production sites in Italy and Switzerland as well as 5 commercial branches in Italy, France, Germany, the UK and Switzerland
Origination
IGI’s long-term relationship with the company’s shareholders
Transaction Structure
The fund IGI Investimenti Quattro structured the acquisition together with two industrial partners to acquire the business from the Fabbri family
The transaction was structured as an asset deal, with an Italian newco acquiring the most relevant Italian and European assets. The deal was funded with equity and with a medium-term banking loan
Investment Rationale
Leading market position in Europe in the production and marketing of machines and film for fresh food packaging
Market supported by long-term trend of fresh food consumption increase
High potential from strengthening the management team
New product development through R&D of MAP (Modified Atmosphere Packaging) technology
Industrial footprint optimization
Value Creation Strategy
Appointment of a new CEO, CFO and all first line managers, including Sales, HR, Operations, R&D, Branches
Supporting production capacity increase with new PVC extruders lines, printing machines and upgrading of the Vignola plant
Optimization of production plants through the consolidation of the Swiss machine plant into the Italian plant
Upgrading of the internal reporting system to IGI standards
Working capital management improvement and implementation of cash pooling policy
Value Realization
In April 2014, IGI and the other shareholders sold a 51% stake to Lincolnshire Management, reducing their respective stakes proportionally
Final exit on October 2017 through a secondary sale to a financial sponsor