Italian mid-market firm Alto Partners has acquired Diquigiovanni, a manufacturer of PVC windows and doors, in a deal understood to value the company at around €20 million.
This marks the seventh transaction from Alto’s second fund, which closed in 2007 on €165 million, and takes the fund to around 50 percent invested.
The deal comprised roughly half equity and half debt, provided by a consortium of five local banks led by Banca Popolare di Vicenza.
“While leveraged deals are difficult to complete, and large deals have almost vanished altogether, most of the local banks were happy to support this deal,” said Raffaele de Courten, one of Alto’s two founding partners.
Diquigiovanni makes and distributes PVC door frames and windows. It was founded in 1967, originally producing fittings in Aluminium, and began specialising in PVC at the end of the 1980s.
Alto Capital II acquired a 78.5 stake in Diquigiovanni from the two founding shareholders – Lino Diquigiovanni and Giuseppe Faggion – who have reinvested a 10 percent stake each.
Businesses in the manufacturing sector, particularly those connected with the construction industry, have been hit hard by the downturn.
Commenting on this, de Courten said: “The companies that have been able to survive this year will manage the future easily.”
Based in Milan, Alto was founded by de Courten, formerly of the European Investment Bank, and Stefano Scarpis, who formerly ran a €250 millon private equity fund named Prudentia.