Eurazeo expands into Italy

The French private equity firm has acquired a 20 percent stake in Banca Leonardo.

Eurazeo has announced that it is acquiring a stake in Italian investment banking boutique Banca Leonardo, following its acquisition by a team of investment bankers led by Gerardo Braggiotti. The Paris-listed private equity firm is taking a 20 percent stake in the bank, subject to approval from the Bank of Italy, the relevant competition authorities and various unstated conditions in the acquisition agreement.

The firm said in a statement that one of the objectives of this acquisition was to create a 50:50 joint venture between Eurazeo and Leonardo to pursue private equity opportunities in Italy.

Reuters, citing sources close to the deal, suggested that the acquisition was worth around €100 million ($117.6 million) and that Braggioti, a former Lazard Banker, would seek to bring in new shareholders and use the bank as the basis to create his own investment banking firm

In other news, Eurazeo announced an add-on acquisition for one of its portfolio companies. The Fraikin Group, a commercial vehicle contract hire company, has acquired the commercial fleet division of UK transport logistics company Lex Transfleet. The value of the deal was not disclosed.