Highlights

Macroeconomic instability, combined with a struggling domestic economic situation, have negatively impacted mid-market M&A dealmaking activity in Italy during Q1 2019.

During Q2 2019, however, activity has significantly picked up again, bringing buyout volumes for H1 2019 back to familiar historical levels. In March this year, Italy formally embraced China’s ‘Belt and Road’ initiative and, as a result, we should expect to see a positive impact on growth and potentially on M&A deal activity over the next few years. This endorsement comes at the same time as the European Commission’s approval of new foreign direct screening rules, which aims to protect Europe’s security, public order and strategic interests.

Two of the most active sectors are Industrial Products & Services and Financial Services, which both have – and still are undergoing – consolidation waves amid fragmented markets and are ripe for a technological overhaul.

The key transactions that took place during the period include:

Consumer, Leisure & Retail

  • Clessidra acquired L&S Lighting, the manufacturer and distributer of lighting solutions and embedded LED systems for residential, industrial and retail applications, for an estimated consideration of €100m
  • Riverside Company acquired La Galvanina, the producer of premium private label and branded mineral water and traditional and organic soft drinks, from the Mini family, for an estimated consideration of €80m

Healthcare

  • ICG and Merieux Equity Partners acquired DOC Generici, the distributor of generic medicines, from CVC Capital, for an undisclosed consideration

Industrial Products & Services

  • The Carlyle Group sold Marelli Motori, the leading electric motor and generator manufacturer, to Langley Holdings, for an undisclosed consideration. DC Advisory advised The Carlyle Group on the sale of Marelli Motori to Langley Holdings, discover more >
  • H.I.G. simultaneously acquired Cadica, Tessilgraf and Bernini, which are now combined into a global leading trim and packaging manufacturer for the premium and ultra luxury fashion industry, for an undisclosed consideration

Services

  • Bregal Milestone acquired a majority stake in Epipoli, the provider of gift cards and customer engagement services to corporates, for an undisclosed consideration

TMT

  • Equinox Investments acquired Quid Informatica, the company designing and implementing solutions in the field of information and communication technology, for a consideration of €72m