Luxury apparel producer Mariella Burani Fashion Group (MBFG) acquired 51 percent of Facco Corporation SpA, a producer and distributor of gold and precious stone jewellery operating in the accessible luxury goods market.
The acquisition is the first step in the Group's strategic programme to extend its leading position in the European accessible luxury goods market into jewellery; a segment highly complementary to leather goods and fashion.
Facco Corporation, founded in 1969 by Albino Facco in Vicenza Italy, designs, manufactures and distributes gold and silver jewellery.
In 2005, the Company generated € 11,6 million of revenues, primarily realised in Italy (60 percent), and Ebitda of approximately € 700. For 2006, management expects the Company to generate revenues in excess of €12,5 and Ebitda in excess of € 1 million. The Company's balance sheet at closing reflects working capital representing 20 percent of expected annual revenues, below the industry average, and no debt.
The Transaction MBFG Spa will directly acquire 51 percent of the equity of Facco Corporation SpA; 2 percent from Gilberto Facco and 49 percent from INTERIM srl (controlled by Gilberto Facco) for € 1,9 million, which will be paid in two tranches: 50 percent at closing and 50 percent on January 15, 2007. The resulting Enterprise Value (EV) of Facco is €3,725 million, reflecting a 2005 EV/Ebitda multiple of 5.6x.
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