Bonomi sides with Farinetti: 52% of Eataly to Investindustrial

Transaction made official after Wall Street Journal anticipations. Capital increase of 200 million euros and additional purchase of shares. Objective: repayment of much of the debt and aggressive international growth process.

Taken from Repubblica.it - Andrea Bonomi's Investindustrial fund is getting into the saddle of Eataly, Oscar Farinetti's creature that mixes strictly Made in Italy product sales and restaurants. After rumors in the Wall Street Journal, the transaction has now become official: Investindustrial will take over 52 percent of Eataly, through a mixed deal involving a capital increase of 200 million euros and the group's purchase of a package of shares, the value of which was not detailed.

"An investment company of Investindustrial VII L.P. ("Investindustrial") and Eataly S.p.A. ("Eataly," the "Company," or the "Group") have signed an agreement aimed at supporting the international growth of Eataly, an ambassador of Made in Italy food that, for more than 15 years, has been promoting in an integrated way the sale of high-end Italian food products and quality catering in prestigious locations on a global scale," specified the note released on Wednesday morning, today.

With Investindustrial holding an absolute majority, historical shareholders Eatinvest (Farinetti family), the Baffigo / Miroglio family, and Clubitaly (Tamburi Investment Partners) will together own the remaining 48 percent of the capital. "The capital increase effectively resets the Company's net financial debt to zero in order to maximize the financial flexibility needed to accelerate expansion on a global scale," it goes on to explain. The new resources will be used to "support Eataly's growth in Italy and around the world, enhancing its sustainable philosophy and DNA, the continued support of local food chains and the export of products of excellence, both through the expansion of flagship stores on a global scale and through the development of new formats; to acquire the remaining 40 percent of Eataly's business in the United States, in line with the Company's growth strategy and consolidation of its role as ambassador of Made in Italy food abroad."

Founded in 2003 by Farinetti, Eataly has expanded to 40 stores with an international presence with countries including the U.S., the Arab Emirates, Japan and Brazil.

For Investindustrial, which has €11 billion in assets under management, the deal follows the listing of Ermenegildo Zegna through a Spac (in 2021) and the investment in Jacuzzi Brands (2019), the spa brand. More recently it has focused on the U.S. with two deals on TreeHouse Foods and Parker Food Group. In the food sector it has invested 2.5 billion, focusing on private label with La Doria's peeled products; on ingredients with CSM Ingredients, Italcanditi and Hi-Food, and indeed Parker; and on catering with Dispensa Emilia.

The entry into Eataly will also lead to a reshuffling of the chairs: the current CEO, Nicola Farinetti, will become chairman and "the name of the new CEO, a highly experienced manager who will contribute to the growth and consolidation of the Company on a global scale, will be announced shortly."

"Investindustrial, the Farinetti family, the Baffigo / Miroglio family, and Clubitaly (TIP) intend to continue to support the global development of the business, both through a plan of new flagship stores and the opening of new store formats in large cities, as well as continuing on the path of sustainability that has always characterized Eataly. Eataly's growth project with the support of Investindustrial, thanks to its knowledge of the food sector and its consolidated presence in the Italian, European, U.S. and Asian markets, envisages the maintenance of the Company in Italy, where Eataly was born, strong growth in foreign markets such as the United States, where it is already active with 8 flagship stores, and development in the Middle East - Asia, where the Group is currently present with 16 franchised stores."

"We are thrilled to be able to support an Italian excellence in the world such as Eataly as a long-term industrial partner, strengthened by our experience in promoting the development of the companies we support with a view to global development based on the highest ESG and sustainability principles," the comment of Andrea Bonomi, who puts the focus on "supporting Eataly's next stage of growth, preserving its DNA and uniqueness and maintaining its profile of sustainability, supply chain control and ethics." For Nicola Farinetti, the agreement "launches Eataly into a new phase of its history, one that promises great growth internationally. And that will allow us to strengthen our unique format in the world."

Several advisors were at work on the transaction. Investindustrial was advised by Chiomenti Law Firm and Kirkland & Ellis for legal aspects, Deloitte for accounting and tax aspects, Boston Consulting Group for commercial due diligence, and Unicredit as financial advisor. Investindustrial was also supported by Ramboll for environmental and safety aspects and WTW for insurance aspects. Eataly was supported by Fivelex Law and Tax Firm, for legal aspects under Italian law, as well as Tarter Krinsky & Drogin LLP, Danow, McMullan & Panoff, P.C. and Olshan, for legal aspects in the United States. The law and tax firm Biscozzi Nobili Piazza handled the tax aspects of the transaction.

Taken from Repubblica.it

Oscar Farinetti, whom we reached by phone, confirms that his family will retain 22 percent of Eataly and the presidency of the company, which will be entirely Italian.

Translated with: https://www.deepl.com/