Candover acquires from Permira a majority stake in Ferretti SpA, a leading manufacturer of high performance luxury motor yachts Candover* and Permira, two leading Private Equity specialists, today announce the acquisition by Candover of a majority stake in Ferretti SpA (“Ferretti”) from Permira.
Majority equity funding is being provided by the Candover 2005 Fund (approximately 60%) with Permira Funds, Norberto Ferretti, Chairman, and his management team re-investing the remaining 40%. Debt and mezzanine financing is being underwritten by Royal Bank of Scotland (RBS). The acquisition is conditional upon EU antitrust approvals and is expected to complete by the end of 2006.
This is the fifth investment to be made from the €3.5bn Candover 2005 Fund and is the first investment by Candover’s Italian office which opened in September 2006.
Ferretti is one of the world’s leading manufacturers of high performance luxury motor yachts.
The business operates through nine leading brands, Ferretti, Pershing, Itama, Riva, Apreamare, CRN, Custom Line, Mochi Craft and Bertram, all focused on the top end of each market segment. In the financial year to August 2006, Ferretti reached €770.4m of value of production and 118.4m of EBITDA selling 461 yachts through a network of 159 dealers, across 95 countries.
Founded in 1968 by Norberto Ferretti, currently Chairman, the business is headquartered in Forli, Italy. It employs 2,600 people and operates from 22 production facilities across 15 sites in Europe, with one in the US. Ferretti’s management team has grown the business significantly both organically and via complementary acquisitions. In 1998, Ferretti acquired Bertram Yachts and Pershing, CRN in 1999, Riva in 2000, Apreamare and Mochi Craft in 2001, and Itama in 2004. In the last three years Ferretti’s revenues have grown at a rate of
almost 23% per annum. Permira acquired the Group in 1998, brought the Company public in 2000 and took it private again in 2002.The Company, which had initiated a dual track, will therefore postpone the IPO to enter the next phase of the Company’s development.
Commenting on the deal, Norberto Ferretti said :
“We are extremely pleased to be backed by Candover, a well respected European private equity house. Their financial expertise will be invaluable to help execute on the next phase of our growth strategy. We believe that, with their help, we can continue to expand our business internationally both organically and by acquisition, to sustain our position as the world’s leading manufacturer of high performance luxury yachts”.
Commenting on the transaction, Aldo Maccari, Candover Director and Head of Italy, said: “Ferretti is an exceptional business and a highly sought-after asset. We are delighted to be taking a majority stake with Permira and Ferretti’s founder retaining a significant stake in the new equity structure. The business has demonstrated an impressive track record of organic revenue and EBITDA growth, is well invested and growing at pace. As a result, we expect
to see that out-performance continue under the careful guidance of the management team, led by Norberto Ferretti, Founder and Chairman of the business”.
Paolo Colonna, a Permira partner and Ferretti board member, comments:
“We’re extremely excited about partnering with Candover and Norberto Ferretti to support Ferretti in a new development phase. We strongly believe in the Group’s potential and in the outstanding management team, an amazing platform for future success”.
Candover was advised by Goldman Sachs and Rondelli & Partners (m&a), Bonelli Erede Pappalardo (legal), Camozzi & Bonissoni (tax), KPMG (accounting). Debt advisors were Rothschilds.
Permira was advised by Mediobanca, Merrill Lynch and Lazard (m&a), Studio Giliberti Pappalardo Triscornia (legal), Allen & Overy and Clifford Chance (financing legal) Deloitte & Touche (accounting), Bain (business) and Studio Fantozzi (tax).
-Ends- *Candover means Candover Investments plc and / or one or more of its subsidiaries, including Candover Partners Limited as General Partner of the Candover 1994, 1997 and 2001 Funds and as Manager of the Candover 2005 Fund.
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