U.S. private equity firm Carlyle Group has asked investors to submit bids for Irca in a deal valuing the Italian food ingredients maker at more than €1 billion, two sources close to the matter said.
Carlyle, which owns 97% of the group based north west of Milan, has sent out initial teasers to investors and expects non-binding bids to come in the first half of April, the sources said.
Both Carlyle and Irca declined to comment.
'Deal Closed By End Of June'
BNP Paribas and Rothschild are advising Carlyle on the sale, which one of the sources said should close by the end of June.
Irca, which manufactures ingredients for the food industry including for pastry-making, baking and ice-cream retailing, is expected to command a double-digit multiple to core earnings, one of the sources said.
Irca's revenues in 2021 topped €365 million, chief executive Paolo Perego told Reuters.
In 2017, Carlyle bought an 80% stake in Irca from European private equity fund Ardian and from the company's founding family Nobili.
Irca, which was founded in 1919, recently announced the acquisition of In2Food, a US distributor, as well as unveiling two new creations production lines. In 2018, it acquired the Dobla chocolate decorations brand.
In February, announcing its fourth-quarter and full-year results, Carlyle Group CEO Kewsong Lee hailed the business' "momentum and our continued progress, [which] has resulted in a new level of earnings power that illustrates the long term growth trajectory of our expanding and diversifying global platform."
News by Reuters, edited by ESM – your source for the latest A-Brands news. Click subscribe to sign up to ESM: European Supermarket Magazine.
