Credem Private Equity Announces Takeover Bid on Finlogic

Credem Private Equity sgr announced on December 6th the forthcoming launch of a takeover bid on Finlogic spa, an Apulian group, based in Acquaviva delle Font (Bari), that provides integrated labeling systems for recognition and traceability, listed on Euronext Growth Milan at €12 per share.

Finlogic had landed at the then AIM Italy in 2017 at €3.60 per share and, on December 8th, it closed the trading session at 11.60, after it had already jumped to €11.50 on December 7th from €7.12 the day before. All for a capitalization at these prices of around €84 million.

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Finlogic closed the first nine months of 2022 with €48.7 million in revenues

In detail, Credem Private Equity, on behalf of the Credem Venture Capital II, Credem Elite, and EltifPlus funds, has signed an agreement with BF Capital srl, the financial holding company of the Battista family and Finlogic’s main shareholder with 61.625 percent of the capital, and with the minority shareholder Italcode (controlled by Vincenzo Battista) with 2.723 percent, which provides for both parties to contribute their entire stake to the takeover bid. In addition, BF Capital has pledged to reinvest in the vehicle that will launch the takeover bid of the proceeds from joining the tender offer.

The vehicle that will launch the takeover bid will be controlled (directly and/or indirectly) by Credem and possibly participated in (again directly or indirectly) by other investors identified by Credem itself, and will also be participated in by the current managing director, who is expected to be confirmed at the helm, as well as by other managers of the Finlogic group.

The execution of the agreement and, consequently, the promotion of the offer are suspensively conditioned on the occurrence of a number of conditions, including Antitrust approvals and the non-exercise of golden power by the government. The tender offer will be deemed effective if the acceptances of the offer allow the acquiring vehicle to hold a stake of at least 95 percent of Finlogic’s voting rights.

Credem is being assisted in the transaction by the law firm Gatti Pavesi Bianchi Ludovici. For Credem, the business due diligence was performed by OC&C Long Term Partners, KPMG handled the financial aspects while the firm Russo De Rosa & Associati handled the tax aspects; BDO performed the ESG analysis. The law firm L2 Value is assisting BF.

Finlogic closed the first nine months of 2022 with €48.7 million in revenues, up 29 percent from €37.7 million in the nine months of 2021, including €2.9 million from the two companies acquired during the period, Alfacod srl and ASE srl. In contrast, the first six months had ended with €30.9 million in revenues, Ebitda of €5 million, and net financial debt of €4 million. Finally, the 2021 budget recorded €51.3 million in revenues, Ebitda of €8.2 million, and net financial debt of €2.6 million.

The deal comes for Credem Private Equity funds just days after the announcement of the acquisition of controlling interest in LIR – Laboratori Italiani Riuniti spa, with an investment of €10 million.

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(Featured image by jarmoluk via Pixabay)

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First published in Be Beez, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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