Dual Acquisition by Entangled Capital and Capital Dynamics

February 28, 2024
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Dual acquisition by Entangled Capital and Capital Dynamics which have invested in Sicatef (Treviglio, Italy) and Luxenia Umbro Tiberina (Perugia, Italy) through their portfolio company Alphial. The two acquired companies produce and distribute tubular glass ampoules and have been present in the important pharmaceutical glass market for over 90 years.

Sicatef and Luxenia hold leading positions in both the Italian and global markets where they are reference suppliers of pharmaceutical glass to pre-eminent pharma companies. This positioning has been achieved thanks to the combination of well-developed Italian know-how, the use of high-quality raw materials and automated, technologically advanced production lines, so ensuring a premium product offering. Sicatef and Luxenia enjoy aggregate annual revenues of over Euro 13 million and an EBITDA margin exceeding 20%.

The Alphial group, originally born from the merger of SM Pack (Felino, Italy) and Crestani (Sandrigo, Italy), is owned 70% by Entangled Capital’s first fund and 30% by Capital Dynamics. With the dual acquisitions of Sicatef and Luxenia, the group’s total production capacity is of over 1.5 billion pieces per year and creates now the largest privately-held European manufacturer of glass ampoules and vials for the pharmaceuticals and cosmetics sectors with a European market share of circa 30%. The development of the Alphial group via this buy-and-build approach is expected to generate significant commercial and industrial synergies amongst all the companies involved. Overall, the enlarged Alphial expects to earn annual revenues of circa EUR 40 million and group EBITDA exceeding EUR 8 million.

This transaction firmly illustrates the investment value creation strategy that Alphial’s shareholders intend to pursue in the lower mid-market. In particular, they seek to create centres of excellence in fragmented sectors, support small- and medium-sized family businesses in their organic development and growth via acquisition and strengthen the position of the underlying business in the domestic and international markets served.

Roberto Giudici, CEO of Entangled Capital SGR, commented: “Starting from a small family business, we are proud to have created the European leader in the production of glass ampoules for the pharmaceutical sector in just a few years. We are also pleased to be able to make a meaningful contribution at a national level to the creation of an Italian centre of excellence in pharmaceutical glass packaging.”.

David Smith, Capital Dynamics’ Senior Managing Director, remarked: “The additions of Luxenia and Sicatef within the perimeter of Alphial position the much-enlarged business as the privately-held country market leader in pharmaceutical ampoules and sterilised vials with strong sustainability credentials. We are delighted to have enhanced and deepened our successful partnership with Entangled Capital and the professional CEO of the enlarged group, Valerio Marchi.”.

Valerio Marchi, CEO of Alphial, added: “The dual acquisition is part of the company’s strategic plan which aims to make major industrial investments to strengthen production capacity and build a customer/product portfolio of demonstrable value. The Alphial group, with a total of five plants and 61 lines, thus doubles its production capacity.”.

Entangled Capital was supported by Giovannelli e Associati for legal aspects, by Spada Partners for accounting and tax due diligence and by Libra for ESG due diligence. Bird & Bird rendered legal advice to Capital Dynamics. The shareholders of Sicatef and Luxenia were assisted by the M&A Advisory team of Ethica Group as financial adviser to the transaction, by Horizon as business adviser and by Gelmetti Studio Legale Associato with respect to legal matters. The acquisition financing for the transaction was provided by Cassa Centrale Banca which was assisted by the law firm Shearman & Sterling.

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