September 24th, 2020 – EC I, the fund managed by Entangled Capital SGR, today announced an agreement to acquire a majority position in SM Pack S.p.A., an Italian company active in the production of glass vials and bottles used in the pharmaceutical and cosmetics/perfume industries.
Capital Dynamics, an independent global private asset management firm, has participated in the transaction via the strategic small capitalization program of its long-established private equity co-investment business.
“We are enthusiastic about EC I’s first portfolio company”, said Roberto Giudici, Entangled Capital’s CEO and co-founding partner. “SM Pack has all the elements we seek in a target company. The business enjoys a leading market position and offers strong growth potential, both organically and through bolt-on acquisitions. Capital Dynamics’ participation will enhance our efforts to implement a more professional approach to the growth of the company, aligned with international standards from economic, financial and responsible investment perspectives, also contributing to firepower for add-on acquisitions”, adds Giudici.
SM Pack, founded in 1964 as Soffieria Mezzadri, is today an Italian champion in the transformation of tubular glass into vials, bottles and sample containers for the pharmaceutical and cosmetics/perfume industries. With three production plants (two in Italy and one in Spain), 130 employees, 40 production lines with a total capacity of over 500 million pieces/year and a new, state-of-the-art sterilization facility, the company serves more than 230 customers and is considered a reliable, trusted partner in the industry.
During the first half of 2020, SM Pack demonstrated considerable resilience in the face of the healthcare emergency induced by COVID-19, posting strong year-on-year revenue growth, largely due to the inherent flexibility provided by its three discrete production sites coupled with the breadth of its offering and focus on clients’ specific needs. SM Pack earned Euro 15 million in revenues in 2019.
The involvement of Capital Dynamics as co-investor confirms Entangled Capital’s role as a reliable partner for Italian and foreign institutional investors who value the attractiveness of Italy’s SMEs and their development potential in terms of professionalization, growth and increasing global reach.
David Smith, Capital Dynamics’ Senior Managing Director, states: “The SM Pack transaction concluded by our strategic small capitalization program represents a valuable SME co-investment opportunity where the important contribution of professional investors such as Entangled Capital can really make a difference. We are delighted to have formed what we hope will be an enduring partnership with Entangled Capital and SM Pack’s professional CEO.”
Claudio Baratta, SM Pack’s CEO comments: “We are excited to have found in Entangled Capital and Capital Dynamics new partners that will allow us to continue and enhance SM Pack’s growth trajectory, certain that we will have, in addition to economic and financial support, the organizational and strategic tools to make SM Pack a strong Italian champion on a global stage.“