30/06/08
Candover acquires a 40% stake in Technogym, a global leader in the design, production and marketing of premium fitness equipment and wellness products
Candover, a leading European buyout specialist, today announces that it has signed a definitive agreement to acquire from Nerio and Pierluigi Alessandri a 40% stake in Technogym S.p.A. (“Technogym” or the “Company”), a global leader in the design, development, manufacturing and marketing of premium branded fitness equipment machinery and wellness solutions for business and consumer end markets.
This will be the tenth investment to be made from the €3.5bn Candover 2005 Fund. The acquisition is conditional upon competition clearance and is expected to complete before the end of the summer. The terms of the transaction have not been disclosed.
Founded in 1983, Technogym has grown at a rapid pace in recent years through continuous expansion into new countries and segments and through the launch of successful new products, developing over time a reputation as one of the most active innovators in the fitness industry. The Company serves the major US and European fitness club chains and is developing strong relationships in emerging markets such as Asia and the Middle East, as well as in the Hospitality, Medical/Health and Military segments. In 2007, Technogym generated a turnover of €385m, having grown at an average annual growth rate of over 35% since its inception.
Candover is backing a highly experienced management team led by Nerio Alessandri, the founding Chairman and CEO, who has led Technogym through its 25-year history. Nerio started the business from his garage in Gambettola, Italy and has built it to become today the official provider of training equipment at the 2008 Olympic Games in Beijing.
Commenting on the acquisition, Nerio Alessandri said:
“I am very pleased with this important milestone in the entrepreneurial development of Technogym as it represents an unparalleled opportunity for our management, employees and all our stakeholders. Working with an international partner of the caliber of Candover will act as an important catalyst in the future development of the Technogym business globally and will help us to achieve our aspiration: to be the only truly global company focused on promoting Wellness in order to improve the quality of people’s lives”.
Aldo Maccari, Director and Head of Candover Italy, said:
“We are delighted to be partnering with Nerio Alessandri and his team who have already built up an exceptional business and a premium brand. They remain ambitious in their plans to continue to grow the business in new geographies and new customer segments. As the problem of world obesity increases and governments move from a treatment to a prevention model, health and exercise are becoming a critical focus of the modern world. That is why we are excited to be investing in the global champion of the Wellness industry”.
Merrill Lynch International acted as exclusive financial advisor to Candover. Other advisers were Chiomenti / Clifford Chance (legal), PricewaterhouseCoopers (financial due diligence), Studio Camozzi Bonissoni & Varrenti / Deloitte (tax structuring) and Value Partners (business due diligence). Intesa San Paolo is underwriting the debt financing. The Company was solely advised by Mediobanca Banca di Credito Finanziario while Nerio and Pierluigi Alessandri were advised by Claudio Costamagna.
Ends.
*Candover means Candover Investments plc and / or one or more of its subsidiaries, including Candover Partners Limited as General Partner of the Candover 1997 and 2001 Funds and as Manager of the Candover 2005 Fund.