ITALY – Private investment firm, Bain Capital and BC Partners have entered into a joint ownership agreement for Fedrigoni, a leading global producer of self-adhesive labels and fiber-based packaging products.
The deal is anticipated to conclude by the end of 2022, subject to approvals by relevant regulatory authorities. The transaction is valued at US$3 billion, reported Reuters.
Founded in 1888, Fedrigoni produces self-adhesive labels and materials and value-added papers for luxury packaging and other creative solutions. The company was acquired by Bain Capital in 2017.
Under Bain Capital’s ownership, Fedrigoni has more than doubled Adjusted Sales and nearly tripled Adjusted EBITDA through a combination of organic growth acceleration and M&A execution.
Fedrigoni Chief Executive Officer Marco Nespolo said: “The whole Fedrigoni leadership team and I are thrilled to continue our very ambitious growth path in partnership with Bain Capital and BC Partners.
“The last 4 years have seen Fedrigoni undertake a very comprehensive and successful transformation, on product portfolio, geographic footprint, go-to-market, operating model, culture, and governance.”
This new partnership will support Fedrigoni’s management team as they look to build on their successful track record of M&A.
BC Partners’ owner-manager mindset has helped its portfolio companies execute over 400 add-on transactions over the last decade, and as such is the natural partner for Fedrigoni and Bain Capital to help drive value-creation opportunities.
Together with Bain Capital, the Fedrigoni Group has carried out an ambitious transformation journey that rested on five pillars: a distinctive and premium offering; superior customer intimacy and experience and operational excellence.
Others include attraction of the best talent and development of its 4,500 people while creating an inclusive and safe environment; acceleration in acquisitions aimed at geographical expansion; and product portfolio diversification.
Fedrigoni has also embedded sustainability into its business strategy, including ongoing efforts to reduce its environmental impact and to support customers in tackling their transition towards ecological practices and an increasingly circular business.
From the research on increasingly sustainable materials to the development of products to help brands in their plastic-to-paper transition.
From the reuse of waste from customers’ production processes to the development of mono-material solutions.
Through its 2030 sustainability roadmap, Fedrigoni committed to reducing by 30% its carbon emissions by 2030, and to reaching carbon neutrality by 2050 in line with the ScienceBased Targets Initiative, with 95% recovered water and 100% industrial waste recovery across its operations.
It has this year received a Platinum EcoVadis sustainability rating this year, which places Fedrigoni in the top 1% of companies in the same industry worldwide.
BC Partners has developed a thematic focus on sustainability-driven growth in packaging, investing in IMA Group in February 2021, the world leader in the production of automatic packaging machines.
BC Partners has long viewed Fedrigoni as a leader in this attractive and resilient end market, addressing the need for greater sustainability in packaging.
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