Key Takeaways
- • Bain Capital Private Equity and BC Partners have signed definitive documents establishing a joint ownership structure for Fedrigoni, a global producer of self-adhesive labels and fibre-based packaging products, with Bain maintaining a reinvestment stake alongside BC Partners' new capital injection.
- • Under Bain Capital's five-year ownership since 2017, Fedrigoni more than doubled Adjusted Sales and nearly tripled Adjusted EBITDA through organic growth acceleration and M&A execution, demonstrating strong operational performance ahead of this partnership transition.
- • BC Partners' track record executing over 400 add-on transactions across its portfolio companies over the past decade positions the firm as a strategic partner to drive Fedrigoni's M&A-led growth strategy and geographic expansion objectives.
- • Fedrigoni's transformation under Bain focused on five strategic pillars: premium product differentiation, customer intimacy, operational excellence, talent development for its 4,500 employees, and aggressive acquisition-driven geographic and portfolio diversification.
- • The business continues to outperform budget with robust margins and volumes, positioning it favorably for the next growth phase under the joint ownership partnership.
Summary
Bain Capital Private Equity and BC Partners have formalized a joint ownership agreement for Fedrigoni, a leading global manufacturer of self-adhesive labels and fibre-based packaging products, with definitive documents signed on July 26, 2022. The transaction represents a partial exit and refinancing for Bain Capital, which acquired Fedrigoni in 2017, while introducing BC Partners as a new co-investor alongside Bain's continued reinvestment in the business.
Bain's five-year tenure as majority owner produced substantial value creation. The firm more than doubled Adjusted Sales and nearly tripled Adjusted EBITDA through a combination of organic growth acceleration and M&A execution. This operational performance trajectory supports the rationale for the partnership transition, as Fedrigoni continues to outperform its budget with robust margins and volumes at the time of the announcement.
BC Partners brings specialized expertise in M&A-driven value creation, having executed over 400 add-on transactions across its portfolio companies during the preceding decade. This acquisition experience directly aligns with Fedrigoni's strategic growth model, which has prioritized geographic expansion and product portfolio diversification through targeted acquisitions. BC Partners' owner-manager investment philosophy is positioned to support the Fedrigoni management team's continued execution of this M&A strategy.
Fedrigoni's transformation under Bain Capital rested on five core strategic pillars: establishing a distinctive premium product offering, strengthening customer intimacy and experience, achieving operational excellence, attracting and developing talent across its 4,500-person workforce while maintaining inclusive and safe working conditions, and accelerating acquisitions for geographic and product diversification. This multifaceted approach, combined with the partnership's combined capital and operational resources, establishes the foundation for the next growth phase under joint ownership.
Bain's five-year tenure as majority owner produced substantial value creation. The firm more than doubled Adjusted Sales and nearly tripled Adjusted EBITDA through a combination of organic growth acceleration and M&A execution. This operational performance trajectory supports the rationale for the partnership transition, as Fedrigoni continues to outperform its budget with robust margins and volumes at the time of the announcement.
BC Partners brings specialized expertise in M&A-driven value creation, having executed over 400 add-on transactions across its portfolio companies during the preceding decade. This acquisition experience directly aligns with Fedrigoni's strategic growth model, which has prioritized geographic expansion and product portfolio diversification through targeted acquisitions. BC Partners' owner-manager investment philosophy is positioned to support the Fedrigoni management team's continued execution of this M&A strategy.
Fedrigoni's transformation under Bain Capital rested on five core strategic pillars: establishing a distinctive premium product offering, strengthening customer intimacy and experience, achieving operational excellence, attracting and developing talent across its 4,500-person workforce while maintaining inclusive and safe working conditions, and accelerating acquisitions for geographic and product diversification. This multifaceted approach, combined with the partnership's combined capital and operational resources, establishes the foundation for the next growth phase under joint ownership.
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