Leonardo & Co. Advises QuattroR

Leonardo & Co., in association with Houlihan Lokey, is pleased to announce that QuattroR has acquired a majority stake in Gruppo Ceramiche Ricchetti from the Zannoni family. The transaction closed on December 28, 2018.

QuattroR is a management company, incorporated in 2016 and controlled by its management, that manages a fund of over €700 million. QuattroR targets Italian companies that have solid business fundamentals, despite temporary financial distress, with a flexible investment approach, encompassing the entire spectrum of equity, equity-like, and debt instruments. The fund aims to strengthen and relaunch these companies by providing adequate financial and managerial resources to overcome temporary challenges and support development, also through potential build-up processes. Limited partners of the fund are prominent Italian institutional investors.

Gruppo Ceramiche Ricchetti (GCR) is an Italian industrial holding company active in the production of ceramic tiles for floor and wall applications distributed under leading, proprietary brand names such as Cisa, Cerdisa, and Ricchetti. The company has a long-lasting heritage in the architectural, interior design, and construction industries. Listed on the Milan Stock Exchange since 1996 and headquartered in the Italian ceramic tile district for more than 50 years, GCR has a global production and distribution network with more than 1,000 employees. In 2017, GCR posted a consolidated turnover of more than €160 million, of which 90% was generated outside of Italy.

The transaction was executed via the acquisition by QuattroR of a majority stake in Finkéramos, an investment vehicle incorporated in October 2018, which in turn holds 62% of the share capital of GCR following the contribution by companies controlled by the Zannoni family. Finkéramos is 65% owned by QuattroR and 35% by the Zannoni family, who co-invested in the deal. Finkéramos will launch a mandatory takeover bid on all remaining outstanding shares of GCR at a price per ordinary share equal to €0.215, aiming at a potential delisting of GCR. Top management has been offered a co-investment plan.

QuattroR will support the new strategic plan for the relaunch of GCR, with a combination of recapitalizing GCR and reviewing terms of existing financial debt. The plan will be executed by Maurizio Piglione (CEO) and Matteo Davoli (COO), managers with an excellent track record and solid experience in the ceramic tile sector and company turnaround. They will lead a growth strategy incorporating over €50 million investments in the upcoming five years, supported by approximately €41 million capital increase.

Leonardo & Co., in association with Houlihan Lokey, served as the exclusive financial advisor to QuattroR throughout the acquisition process, assisting the client in structuring and negotiating every aspect of the deal including, inter alia, acquisition of existing shares, capital increase, tender offer, and bank debt terms revision.