dea capital - pieralisi

DeA Capital - Pieralisi

IDeA Corporate Credit Recovery II (IDeA CCR II), an Italian Debtor-in-Possession Financing fund managed by DeA Capital Alternative Funds SGR, a company of the DeA Capital Group, has finalised an investment agreement in the Pieralisi Group today.

The Pieralisi Group, based in Jesi, is a world leader in the production of machinery for the oil industry and separation technologies. During over 130 years history under the leadership of the Pieralisi family, the company has been able to develop a product portfolio based on innovative technologies, establishing itself as a leader in the oil industry and extending the application of its techniques and expertise to various segments of the food industry, including sectors such as water treatment. In 2019 the Group recorded over € 104 million revenues and approximately € 12 million EBITDA.

The transaction involves a capital increase of 51% in Pieralisi Maip by IDEA CCR II and Frapi (holding company belonging to the Pieralisi family), the injection of financial resources to continue the development project by IDeA CCR II and some co-investors for a total of € 15 million and the remodelling of the Group's financial structure.

The Pieralisi family will retain a 49% stake in the capital, ensuring the support and dedication which made it possible for the Group to establish itself in its reference sectors over the past years.

The investment by IDeA CCR II aims to help the Pieralisi family strengthen the Group's capital and financial position, accelerating the company's development plans in all reference sectors and consolidating its leadership position in the global competitive environment.

Alessandro Leopardi, Chief Executive Officer appointed in 2018, has been confirmed in his position and entrusted with the achievement of the objectives set out in the approved business plan, including and the development of the business processes required to meet this challenge.

Gennaro Pieralisi, commented: "Pieralisi history dates back to 1888 but it is since the post-war period that the company's activities have focused on the olive oil sector, bringing about several innovations which have revolutionized the market and made Pieralisi the undisputed leader.  Today 75% of olive oil in the world is produced with Pieralisi machines.  The know-how acquired on the olive oil market has been transferred to other segments where the same separation technologies are used, such as water treatment.  The transaction finalised today represents an important step for the company, its historical partners and especially its employees.  We have several third-generation employees working for our company, and I can still remember the first one".

Vincenzo Manganelli, Managing Director, and Luca Maran, Investment Director of the IDeA CCR II Fund, added: "We are proud to have signed an agreement with the Pieralisi family that will allow us to work together to strengthen the development path already undertaken by the Group, leveraging on the skills and the historic Italian brand, recognized worldwide for innovation and product quality. The financial resources will make it possible to accelerate this path, strengthening the industrial plan".

Alessandro Leopardi, CEO of the Pieralisi Group, commented: "Thanks to this agreement, we will continue to implement the growth plan that has already shown its first results in 2019, focusing not only on the Italian nature of the industrial project and production base, but also on the development of the business in geographical areas and market segments where we want to emerge among the recognized leaders, leveraging on the history and know-how of the company that has always focused on quality and excellence of technology and service, identifying and anticipating customers’ needs as well as market changes".

The Giovanardi-Pototschnig & Associati law firm and NASaW law firm supported the operation as legal advisors, while PricewaterhouseCoopers Advisory and Driver Re & Consulting acted as financial advisors of the company. Spada Partners dealt with fiscal issues while ERM, Accuracy and Considi assisted IDeA CCR II in environmental / ESG, financial and industrial due diligence respectively.