27th Oct 2006 16:33
For immediate releaseFriday 27th October, 2006Candover acquires from Permira a majority stake in Ferretti SpA, a leadingmanufacturer of high performance luxury motor yachtsCandover* and Permira, two leading Private Equity specialists, today announcethe 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 hismanagement team re-investing the remaining 40%. Debt and mezzanine financing isbeing underwritten by Royal Bank of Scotland (RBS). The acquisition isconditional upon EU antitrust approvals and is expected to complete by the endof 2006.This is the fifth investment to be made from the ¢â€š¬3.5bn Candover 2005 Fund andis the first investment by Candover's Italian office which opened in September2006.Ferretti is one of the world's leading manufacturers of high performance luxurymotor 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 toAugust 2006, Ferretti reached ¢â€š¬770.4m of value of production and ¢â€š¬118.4m ofEBITDA selling 461 yachts through a network of 159 dealers, across 95countries.Founded in 1968 by Norberto Ferretti, currently Chairman, the business isheadquartered in Forli, Italy. It employs 2,600 people and operates from 22production facilities across 15 sites in Europe, with one in the US. Ferretti'smanagement team has grown the business significantly both organically and viacomplementary acquisitions. In 1998, Ferretti acquired Bertram Yachts andPershing in 1998, 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 arate of almost 23% per annum. Permira acquired the Group in 1998, brought theCompany public in 2000 and took it private again in 2002.The Company, which had initiated a dual track, will therefore postpone the IPOto 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 Europeanprivate equity house. Their financial expertise will be invaluable to helpexecute on the next phase of our growth strategy. We believe that, with theirhelp, we can continue to expand our business internationally both organicallyand by acquisition, to sustain our position as the world's leading manufacturerof high performance luxury yachts".Commenting on the transaction, Aldo Maccari, Candover Director and Head ofItaly, said:"Ferretti is an exceptional business and a highly sought-after asset. We aredelighted to be taking a majority stake with Permira and Ferretti's founderretaining a significant stake in the new equity structure. The business hasdemonstrated an impressive track record of organic revenue and EBITDA growth,is well invested and growing at pace. As a result, we expect to see thatout-performance continue under the careful guidance of the management team, ledby 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 Ferrettito support Ferretti in a new development phase. We strongly believe in theGroup's potential and in the outstanding management team, an amazing platformfor future success".Candover was advised by Goldman Sachs and Rondelli & Partners (m&a), BonelliErede Pappalardo (legal), Camozzi & Bonissoni (tax), KPMG (accounting). Debtadvisors were Rothschilds.Permira was advised Mediobanca, Merrill Lynch and Lazard (m&a), StudioGiliberti Pappalardo Triscornia (legal), Allen & Overy and Clifford Chance(financing legal), Deloitte & Touche (accounting), Bain (business) and StudioFantozzi (tax).-Ends-*Candover means Candover Investments plc and / or one or more of itssubsidiaries, including Candover Partners Limited as General Partner of theCandover 1997 and 2001 Funds and as Manager of the Candover 2005 Fund.For further information, please contact:For CandoverAldo Maccari, Head of Italy +39 02 763 16002For PermiraPaolo Colonna +39 02 7600 4740Tulchan CommunicationsJulie Foster / Peter Hewer +44 (0) 20 7353 4200About Candover:Candover is a leading provider of private equity for large European buyouts. Founded in 1980, Candover has invested in 130 transactions with a value inexcess of ¢â€š¬38 billion. Investment in deals by Candover is provided in twoforms, from Candover Investments plc, a publicly quoted investment trust, andfrom funds managed by Candover Partners Limited, a wholly owned subsidiary. In November 2005, Candover raised the ¢â€š¬3.5bn Candover 2005 Fund which has madefour investments to date, the ¢â€š¬1bn acquisition of Hilding Anders, a leadingEuropean mattress and beds manufacturer, the ‚£348.7m acquisition of UK mailservices company DX Services plc and merger with Secure Mail Services, the ¢â€š¬450million buyout of Norwegian cable TV operator UPC Norway, and the ¢â€š¬480 millionbuyout of EurotaxGlass's Group, a leading provider of automotive data andintelligence services.The Candover Group now has four offices in London, Paris, Dƒ¼sseldorf and Milan,and a local advisor in Madrid. Candover Partners is authorised and regulated bythe Financial Services Authority in the UK.About Permira:Permira is a leading international Private Equity specialist. As an independentbusiness, Permira is owned and controlled by its partners. The firm's team ofover 100 professionals, based in Frankfurt, London, Madrid, Milan, New York,Paris, Stockholm and Tokyo, advises the Permira Funds with a total committedcapital of more than Euro 20 billion. Since 1985, the Permira Funds havecompleted over 280 private equity transactions. During the last year, thePermira Funds have committed to ten transactions with a combined transactionvalue of over Euro 27 billion. Recent deals involving the Permira Funds haveincluded the acquisitions of Nordic telecoms firm (TDC) - the largest privateequity transaction ever undertaken in Europe - pan-European media business (SBSBroadcasting), leading UK roadside recovery and insurance firm (the AA),lItalian leading betting company Sisal and (Intelsat), the largest globalsatellite business. www.permira.comENDCANDOVER INVESTMENTS PLCRelated Shares:
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