BS Private Equity backs Radici buyout

The Italian private equity firm has teamed up with Centrobanca to back a management buyout of the Italian packaging group for an undisclosed consideration.

BS Private Equity, the Italian private equity firm which this summer closed its fourth buyout fund on E550m, has co-led the buyout of Radici Film, an Italian manufacturer of packaging products for the food industry.


Financial terms of the transaction have not been disclosed, although Italian reports in June valued the business at E190m. Financing for the transaction was arranged by Banca Intesa.


The deal sees BS join forces with Centrobanca, the investment bank controlled by Gruppo Banche Popolari Unite. Centrobanca invests its own financial resources as well as those raised by Fondo Sviluppo Impresa, an Italian closed-end fund with a total commitment of E50m, sponsored by Centrobanca and Gruppo Banca Popolare di Bergamo.


Following the transaction, BS Private Equity and Centrobanca will jointly control 84.6 per cent of the share capital while vendor Radici Group will retain the remaining 15.4 per cent of the company.


Radici Film, founded in 1990, has made a series of acquisitions in Italy and a recent entry into the Hungarian market. The company reported turnover of approximately E160m in 2002 and has two production plants, located in Italy and Hungary, employing 500 people.


BS Private Equity, Centrobanca and Valerio Garzitto, CEO of Radici Film, said they planned to expand the business through add-on acquisitions or mergers with other players in the flexible packaging industry.


In the past 18 months, BS Private Equity completed eleven new transactions, most recently backing a management buy-in at Pilosio, a company that supplies the construction industry with scaffolding and formworks.


Centrobanca entered the Italian private equity market in 2001 and since then closed eight transactions (MBO-MBI and development capital), investing a total of E80m.