Italian private equity firm BS Private Equity has completed two deals, the seventh and eighth from its €550 million ($675 million) Italian Private Equity Fund IV (IPEF IV).
The firm has invested approximately €20 million for a 57 percent stake in a management buy-in at MIT Group, an Italian retail chain focused on mobile phone-related products and services. The firm has two units: MIT, which has 93 shops and a strong commercial relationship with TIM, the mobile arm of Telecom Italia; and VOICE, a multi-provider alternative with 23 shops promoting the products and services of Vodafone, WIND and H3G.
In 2003, MIT Group, which employs more than 400 staff, reported sales of €118 million and EBITDA of €5.5 million.
In a statement, BS Private Equity said the rationale for the deal was to open 40 to 50 new shops over the next four years, mainly in the South of Italy, as well as completing selected add-on acquisitions of smaller competitors.
BS has also completed the management buyout of TREI, a Modena-based manufacturer of veterinary products and feed additives for the livestock industry, for an undisclosed sum. BS said it now controls a “significant stake” of the company’s share capital. In 2003, TREI delivered sales of €27 million and EBITDA of €9.4 million.
In a statement, BS said IPEF IV is currently around 40 percent invested, having now completed eight acquisitions with a total enterprise value of more than €620 million. The firm recently exited STC and In Europa Editore from its 2000-vintage fund IPEF III, and is in the process of exiting ECO from its 1996 IPEF II fund. The firm says the divestments will together deliver around €64 million of proceeds – nearly three times the original aggregate cost of €22 million.