SCOUTING CAPITAL ADVISORS ASSISTS POGGIPOLINI IN THE CLUB DEAL INVESTMENT ARRANGED BY CHERRY BAY CAPITAL
Scouting Capital Advisors, an independent financial advisory firm specialized in Corporate Finance and M&A, acted as the exclusive financial advisor of the Poggipolini family in the negotiation that led Cherry Bay Capital (CBC) Group, together with a group of private individuals, to invest through a Club Deal structure in Poggipolini Spa, a leading company in the design and production of fasteners and critical machined parts in titanium and special materials for the aerospace and motorsport industry. Scouting Capital assisted Poggipolini Spa with a team composed of Marco Musiani, Managing Partner, Dino Orlandini, Managing Director and Riccardo Donadel, Senior Analyst.
The transaction entails a total investment commitment of 10 million Euros, part of which for the acquisition of a minority stake in Poggipolini Spa through the purchase of existing shares and newly issued shares (capital increase), and partly for the subscription of a convertible bond loan.
Poggipolini Spa is an innovative SME that operates with a leadership position in the niche of the design and production of bolts and custom-made components in titanium and other special alloys, among the first companies in the world in the hi-tech hot forging segment. The company is export-oriented with about half of the turnover realized outside Italy, end markets are 60% aerospace, 20% motorsport, and the remaining 20% automotive. Poggipolini, which is Nadcap certified and is part of Borsa Italiana’s Elite program, has distinguished itself on the market for introducing a new industrial standard through a patented production process innovation. In the last three years the company exhibited a 40% increase in turnover, going from 10.6 million Euros in 2017 to 15.1 million Euros in 2019, and 97% EBITDA increase going from 1.9 million Euros in 2017 to 3.7 adj million Euros in 2019.
Cherry Bay Capital Group (CBC), Established in the Principality of Monaco and present today in various jurisdictions, is an international group active in the private capital sector and in asset consultancy dedicated to selected private clients and family offices.
The investment aims to support organic expansion through the implementation of a new production center already partially built according to the most advanced digital factory logic, and growth by external lines, projecting the company on global markets.
Legal firm BLF Studio Legale also acted as sell-side advisor with the lawyers Giuseppe Forni, Partner and Giovanni Ludergnani, Senior Associate, as well as Accounting firm Studio Margotto with the professionals Marcello Margotto and Simona Piermattei.
For Cherry Bay Capital group, KPMG acted as advisor with a team led by Massimiliano Di Monaco, Partner, and Dario Marasco, Senior Manager, for financial due diligence, Fabio Avenale, Partner and Gabriele Davi, Manager, for tax due diligence and the lawyer Alberto Cirillo, Partner, and the lawyer Giovanni Testa, Senior Lawyer, for legal due diligence. Belluzzo International Partners acted as legal and tax advisor, with a team composed of Luigi Belluzzo, Partner, the lawyer Stefano Serbini, Partner, and the lawyer Giovanna Mazza.