Crédit Agricole Private Equity and Orlando Italy fund invest in Favini

Crédit Agricole Private Equity is investing in Italian company Favini Srl, world market leader in industrial papers, alongside the Orlando Italy fund as part of a share capital reclassification.

Three years after Orlando Italy made its initial investment, this contribution of capital will enable Favini to launch the next stage of its development. As a result, Orlando Italy now holds a 51% stake in Favini and the CAI I fund managed by Crédit Agricole Private Equity Italia SGR holds 27%, while industrial holding company Lacim holds a 17% stake and the management team owns 5% of the company. In addition to its financial contribution, Crédit Agricole Private Equity will contribute to the company's expansion in France.

Favini, which has been present in paper production for more than 100 years, is world market leader in industrial papers and a key player in special graphic papers thanks to its innovative products intended for the fashion and luxury goods sectors. The company has two paper production plants, one in Rossano Veneto in the province of Vicenza and one in Crusinallo in the province of Verbania, with 480 employees.

The first phase of investment allowed for the overhaul and recovery of the company, which was struggling with a high level of debt. Its revenues have risen from €74.7 million in 2008 to €124 million in 2010, with EBITDA almost doubling from €5.7 million in 2008 to €11 million in 2009, while the number of employees has increased by 7%.

"Now that the recovery phase is complete, Favini is a solid business," states Andrea Nappa, deputy director of Favini and partner at the Orlando Italy fund. "We are present in fast-growing markets such as luxury packaging and our aim is to strengthen our current operations and establish our position in new specialist segments. France is a major market for Favini, particularly in the luxury goods sector. We hope that the relationship with the Crédit Agricole Group will enable us to step up our rate of expansion."

Stefano Zavattaro, Managing Director of LBO & Expansion Capital at Crédit Agricole Private Equity in Italy, adds: "We are very pleased to be able to contribute to Favini's future expansion, with a view to creating a centre for excellence in the graphic and industrial papers segment in Europe".

Representative
Stefano Zavattaro, Managing Director of LBO & Expansion Capital at Crédit Agricole Private Equity in Italy
Advisors

Legal: Ughi Nunziante (Giovanni Bocciardo); D’Urso Gatti Bianchi (Paolo Garbolino)
Strategy: StepChange
Accounting and financial audit: Audirevi
Tax audit: Provaggi