Investindustrial lights up portfolio with Flos investment

The firm’s investment in the Italian lighting company is its second from Fund V

Investindustrial, a buyout firm focused on Southern Europe, has acquired a majority stake in Italian lighting company Flos, according to a statement from the firm.

Sources close to the company have said that the investment values Flos at around €400 million. Investindustrial is acquiring a stake of approximately 80 percent.

Investindustrial declined to comment on the deal.

Current shareholders, the Gandini family and the Rodriquez family, will retain stakes in the company. Federico Martínez Weber, CEO of Antares Illuminación, will also become a shareholder, co-sharing key strategic and financial decisions, according to Investindustrial.

The firm said it would support Flos, a northern-Italian family business which it describes as a luxury and design brand “recognized at a world-wide level for its leadership in residential and architectural lighting,” in the “continuation of its industrial and global expansion, through organic growth and selective add-on acquisitions.”

This investment is the second from Investindustrial Fund V, which closed on its hard-cap of €1.25 billion last April. In December 2012 the firm invested €190 million for a 37.5 percent stake in British luxury carmaker Aston Martin in a deal valuing the company at €940 million.

In March the firm, along with Kohlberg Kravis Roberts, successfully sold its stake in helicopter business Avincis to Babcock International Group for €2 billion, generating a return of just over 6.5x. Investindustrial, which acquired the business for around €70 million in 2005 with equity from Fund III, sold 49.9 percent to KKR in 2010. The exit yielded a 25 percent IRR for KKR and a return multiple of almost 2.5x, a source close to the deal told Private Equity International at the time.