Investment firms Bain Capital Private Equity and BC Partners have entered into a joint ownership agreement for Fedrigoni, a producer of self-adhesive labels and fiber-based packaging products.
Bain Capital acquired Fedrigoni in 2017. Under Bain Capital’s ownership, Fedrigoni has more than doubled Adjusted Sales and nearly tripled Adjusted EBITDA through a combination of organic growth acceleration and M&A execution.
This new partnership will support Fedrigoni’s management team as it looks to build on its successful track-record of M&A. BC Partners’ owner-manager mindset has helped its portfolio companies execute over 400 add-on transactions over the last decade, and as such is the natural partner for Fedrigoni and Bain Capital to help drive value-creation opportunities.
Together with Bain Capital, the Fedrigoni Group has carried out an ambitious transformation journey that rested on five pillars: a distinctive and premium offering; superior customer intimacy and experience; operational excellence; attraction of the best talent and development of its 4,500 people, while creating an inclusive and safe environment; acceleration in acquisitions aimed at geographical expansion and product portfolio diversification.
Fedrigoni has also embedded sustainability into its business strategy, including ongoing efforts to reduce its environmental impact and to support customers in tackling their transition towards ecological practices and an increasingly circular business. From the research on increasingly sustainable materials to the development of products to help brands in their plastic-to-paper transition. From the reuse of waste from customers' production processes to the development of mono-material solutions. Through its 2030 sustainability roadmap, Fedrigoni committed to reduce by 30 percent its carbon emissions by 2030, and to reach carbon neutrality by 2050 in line with the Science-Based Targets Initiative, with 95 percent recovered water and 100 percent industrial waste recovery across its operations. This year it has received a Platinum EcoVadis sustainability rating, which places Fedrigoni in the top 1 percent of companies in the same industry worldwide.
BC Partners has developed a thematic focus on sustainability-driven growth in packaging, investing in IMA Group in February 2021, producer of automatic packaging machines. BC Partners has long viewed Fedrigoni as a leader in this attractive and resilient end market, addressing the need for greater sustainability in packaging.
Ivano Sessa, chairman of Fedrigoni Holding and co-head of Industrials at Bain Capital Private Equity Europe, said that Fedrigoni will focus on strengthening its global leadership and delivering sustainable packaging to global luxury and consumer brands.
Marco Nespolo, CEO of Fedrigoni, added that the last four years have seen Fedrigoni undertake a comprehensive and successful transformation, on product portfolio, geographic footprint, go-to-market, operating model, culture, and governance.
This new partnership, a combination of reinvestment by Bain Capital and investment from BC Partners, which results in a change of control of Fedrigoni to joint control between the two investors, will support Fedrigoni’s management team as it builds on its successful track-record of M&A. The Fedrigoni family, already a partner of Bain Capital as a minority shareholder, will remain invested in the business as the entire management team.
The transaction is expected to close by the end of 2022, subject to approvals by relevant regulatory authorities. A group of financial institutions has committed to provide a debt financing package in support of the transaction. Fedrigoni’s existing senior secured notes are expected to be refinanced at closing of the transaction.
Bain Capital and Fedrigoni were advised by Rothschild, Morgan Stanley, Latham & Watkins, Pirola Pennuto Zei e Associati, Kirkland & Ellis, New Deal Advisors and Bain & Company. Goldman Sachs acted as financial advisor to Fiber Bidco.
BC Partners was advised by Canson Capital Partners and Nomura as lead financial advisors, as well as by advisors including JP Morgan, Afry Capital, White & Case, PwC, Studio Legale Tributario Facchini Rossi Michelutti and Bain & Company.