Investindustrial targets companies Made in Italy

The southern European buyout firm, which is investing its sixth fund, sees value in the Italian market.

Southern European buyout firm Investindustrial is seeing more opportunity in Italy than in Spain as it starts to invest its sixth vehicle.

The firm is understood to have invested €1.4 billion in Italian assets in two transactions announced this month.

Its acquisition of 60 percent of Italian baby, healthcare and beauty brand company Artsana Group from the Catelli family, announced earlier in April, was the first from Investindustrial VI, Investindustrial head of investor relations Carl Nauckhoff told Private Equity International. The company is understood to have an enterprise value of €1.3 billion.

Fund VI closed on its hard-cap of €2 billion in February, as reported by PEI.

The Italian market is less competitive, more difficult to navigate and has fewer auction-driven transactions, Nauckhoff said. “It is a bigger market with less Anglo Saxon entrants and a more complex market than Spain and is deeper, so there’s less of an impact [on prices].”

Artsana generated revenues of €1.4 billion and a consolidated EBITDA of €126 million in 2015 and operates five European production facilities and 19 branches. Its key brands for baby care are Chicco, Neo Baby and Boppy and in health care and beauty it has Pic Solution, Lycia and Control.

Investindustrial plans to accelerate its international expansion and promote its “Made in Italy” branding, it said.

The firm’s acquisition of a majority stake in Valtur Group, which operates holiday resorts in Italy and Croatia, announced in late April, was the last from its fifth fund that closed on €1.25 billion in 2013. There is one more transaction to be announced from that fund, Nauckhoff told PEI.

The firm, which described the Italian holiday market has “highly fragmented,” plans to upgrade and acquire resort assets, with a number currently under review, it said in a statement.

Investindustrial is acquiring its stake from the Ljuljdjuraj family, which will retain a minority share in the company. Valtur Group has an enterprise value of about €100 million and does not own most of the resorts it operates.

The firm aims to create “a leading Mediterranean resort operator with Italian roots,” it said.