Ferretti SpA (Candover-Permira)
October 27, 2006
Compass Advisers ("Compass") is pleased to announce the acquisition of Ferretti S.p.A. ("Ferretti Group") by Candover Investments plc ("Candover"), an established private equity house with its focus on European buyouts. Compass, Rondelli Advisers, the Italian partner of Compass Advisers, acted as financial advisor to Candover in the transaction. The majority equity funding is being provided by the Candover 2005 Fund (approximately 60%) with the 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). This is the fifth investment to be made from the €3.5 billion Candover 2005 Fund and is the first investment by Candover's Italian office which opened in September 2006.
Ferretti Group is one of the world's leading manufacturers of high performance luxury motor yachts. The business includes nine leading brands, Ferretti, Pershing, Riva, Apreamare, CRN, Custom Line, Mochi Craft, Itama and Bertram, all focused on the top end of each market segment. In the financial year ending August 2006, Ferretti reached €770.4 million of the value of production and €118.4 million 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 22 production facilities across 15 sites in Europe, with one in the U.S.
The transaction enables Ferretti Group to benefit from Candover's invaluable financial expertise both in executing its growth strategy, including international expansion organically as well as by acquisitions, and in sustaining its position as the world's leading manufacturer of high performance luxury yachts. Compass identified the opportunity and approached Candover, then assisted the client in performing due diligence, valuing assets and business entities, negotiating the price and transaction terms, providing strategic advice regarding bidding and bidding procedures in Italy, coordinating all activities required in the acquisition process and developing integration and business plans.
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 and 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 revenue and EBITDA growth that is well invested and growing at pace. As a result, we expect to see that out-performance continues under the careful guidance of the management team, led by Norberto Ferretti, Founder and Chairman of the business."