Key Takeaways
- • Bain Capital Private Equity has signed a definitive agreement to acquire Fintyre, Italy's leading replacement tire distributor, from its Europe IV fund, with closing contingent on standard conditions.
- • Fintyre generated approximately €400 million in sales during 2016 across 11 warehouses and 36 retail outlets, serving over 15,000 customers through both wholesale and retail channels.
- • Bain Capital is partnering with existing management, led by CEO Mauro Pessi, to execute an aggressive growth strategy targeting market leadership across Italy and Europe in tire distribution.
- • GSO Capital Partners (a Blackstone Group subsidiary and current sole investor in Fintyre's unitranche bonds) will continue supporting the company through a new unitranche bond issuance to fund the development plan.
Summary
Bain Capital Private Equity announced on March 10, 2017, that it has secured a definitive contract to acquire Fintyre, the leading distributor of replacement tires in Italy, through its Europe IV fund. The transaction is expected to close once customary regulatory and closing conditions are satisfied. This investment signals Bain Capital's continued expansion in the European distribution and automotive sectors.
Fintyre operates as a comprehensive tire distributor across both the wholesale and retail segments of the Italian market. The company maintains 11 warehouses and 36 retail locations throughout Italy and generated approximately €400 million in revenue during 2016, serving a customer base exceeding 15,000 accounts. The business has established itself as Italy's domestic market leader through a combination of organic growth and strategic acquisitions, positioning it as one of the few globally-scaled distributors capable of serving a full range of vehicle types.
The management team, headed by CEO Mauro Pessi, has demonstrated significant operational expertise in building and scaling the business within the competitive automotive aftermarket. Bain Capital's acquisition structure preserves continuity by partnering with Pessi and the existing management team rather than introducing new operational leadership. This approach aligns with Bain Capital's stated strategy of working alongside management teams to drive value creation.
Financing for the transaction includes continued support from GSO Capital Partners, the Blackstone Group subsidiary that currently serves as the sole investor in Fintyre's unitranche bonds. GSO will participate through a new unitranche bond issuance designed to support the company's aggressive expansion plan. Bain Capital and management are targeting expanded market leadership across both Italy and the broader European tire distribution landscape, leveraging Bain Capital's established track record in the distribution and automotive sectors.
Fintyre operates as a comprehensive tire distributor across both the wholesale and retail segments of the Italian market. The company maintains 11 warehouses and 36 retail locations throughout Italy and generated approximately €400 million in revenue during 2016, serving a customer base exceeding 15,000 accounts. The business has established itself as Italy's domestic market leader through a combination of organic growth and strategic acquisitions, positioning it as one of the few globally-scaled distributors capable of serving a full range of vehicle types.
The management team, headed by CEO Mauro Pessi, has demonstrated significant operational expertise in building and scaling the business within the competitive automotive aftermarket. Bain Capital's acquisition structure preserves continuity by partnering with Pessi and the existing management team rather than introducing new operational leadership. This approach aligns with Bain Capital's stated strategy of working alongside management teams to drive value creation.
Financing for the transaction includes continued support from GSO Capital Partners, the Blackstone Group subsidiary that currently serves as the sole investor in Fintyre's unitranche bonds. GSO will participate through a new unitranche bond issuance designed to support the company's aggressive expansion plan. Bain Capital and management are targeting expanded market leadership across both Italy and the broader European tire distribution landscape, leveraging Bain Capital's established track record in the distribution and automotive sectors.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.