Press releases
Crédit Agricole Private Equity is investing in Italian company Favini Srl, world market leader in industrial papers, alongside the Orlando Italy fund as part of a share capital reclassification.
Three years after Orlando Italy made its initial investment, this contribution of capital will enable Favini to launch the next stage of its development. As a result, Orlando Italy now holds a 51% stake in Favini and the CAI I fund managed by Crédit Agricole Private Equity Italia SGR holds 27%, while industrial holding company Lacim holds a 17% stake and the management team owns 5% of the company. In addition to its financial contribution, Crédit Agricole Private Equity will contribute to the company's expansion in France.
Favini, which has been present in paper production for more than 100 years, is world market leader in industrial papers and a key player in special graphic papers thanks to its innovative products intended for the fashion and luxury goods sectors. The company has two paper production plants, one in Rossano Veneto in the province of Vicenza and one in Crusinallo in the province of Verbania, with 480 employees.
The first phase of investment allowed for the overhaul and recovery of the company, which was struggling with a high level of debt. Its revenues have risen from €74.7 million in 2008 to €124 million in 2010, with EBITDA almost doubling from €5.7 million in 2008 to €11 million in 2009, while the number of employees has increased by 7%.
"Now that the recovery phase is complete, Favini is a solid business," states Andrea Nappa, deputy director of Favini and partner at the Orlando Italy fund. "We are present in fast-growing markets such as luxury packaging and our aim is to strengthen our current operations and establish our position in new specialist segments. France is a major market for Favini, particularly in the luxury goods sector. We hope that the relationship with the Crédit Agricole Group will enable us to step up our rate of expansion."
Stefano Zavattaro, Managing Director of LBO & Expansion Capital at Crédit Agricole Private Equity in Italy, adds: "We are very pleased to be able to contribute to Favini's future expansion, with a view to creating a centre for excellence in the graphic and industrial papers segment in Europe".
Representative
Stefano Zavattaro, Managing Director of LBO & Expansion Capital at Crédit Agricole Private Equity in Italy
Advisors
Legal: Ughi Nunziante (Giovanni Bocciardo); D’Urso Gatti Bianchi (Paolo Garbolino)
Strategy: StepChange
Accounting and financial audit: Audirevi
Tax audit: Provaggi
Press contact
Martine Sessin-Caracci – martine.sessincaracci@ca-privateequity.fr – +33 (0)1 43 23 90 88
About Favini
Favini has been present in paper production for more than 100 years. It is world market leader in industrial release papers and also a key player in special graphite papers thanks to its innovative products intended for the fashion and luxury goods sectors.
The company has two paper production plants, one in Rossano Veneto in the province of Vicenza (graphic papers) and one in Crusinallo in the province of Verbania (release papers), as well as a technical paper division present in the schools and office market. It currently has 480 employees.
For decades, the company has taken environmental concerns into account, as demonstrated by the scale of its investment in this area. It has developed a paper made from algae that grows in the Venetian Lagoon (Alga Carta), owns two recycling and water purification plants and uses FSC certified fibres from controlled forests and renewable energy sources.
About Crédit Agricole Private Equity
Crédit Agricole Private Equity is an AMF-accredited asset-management subsidiary of Crédit Agricole, specialising in direct private-equity investment in non-listed companies. A multi-specialist player, Crédit Agricole Private Equity’s team of 100 professionals manages €3.3 billion with specific expertise in LBO & Expansion, Venture Capital, Mezzanine, Co-Investment, Renewable Energy and PPP Infrastructure. Crédit Agricole Private Equity has signed up to the United Nations’ Principles for Responsible Investment (PRI).
Crédit Agricole Private Equity Italia is an investment management subsidiary of Crédit Agricole Private Equity. Its €100 million investment fund CAI I invests in medium-sized businesses presenting solid growth potential. The investment management team, based in Milan, is headed by Stefano Zavattaro.
About Orlando Italy
Orlando Italy is a special situations private equity fund managed by Orlando Italy Management SA and a team of investment professionals and business and financial directors, benefiting from extensive experience in resolving complex situations. Orlando Italy Management SA has €200 million for investments in Italy. In addition to Favini, Orlando Italy's portfolio includes luxury brand Allegri, event organisation company Globe Event Management (GEM), Morris Profumi, Cogetech, No. 3 in slot machines and video lotteries in Italy, and publishing house White Star.
