BrazilVitale & Co. advises on private equity stake in beauty packager Lumson
Fondo Strategico Italiano has injected around €70 million euros in Lumson, an Italian company that produces beauty packaging for major international industry players including Estée Lauder, L’Oréal and Sephora. The capital investment sees the Italian private equity firm take a 35% share in the company.
Lumson was founded in 1975 by the Moretti family. Today, the company has approximately 550 employees, who combined generate approximately €100 million in revenues. Lumson serves as a manufacturer and distributor of beauty packaging products, with 70% of its ‘made in Italy’ production – realised from two production sites in Italy – exported to international markets. Outside of Italy, Lumson has commercial divisions in the United States, France, Spain and Germany.
The investment by Fondo Strategico Italiano (FSI) is according to Maurizio Tamagnini, the company’s chief executive officer, a “perfect example” of the mission of Milan-based private equity firm. “We invest in companies guided by an entrepreneurial family with a solid track record, a long-term vision, focused on the growth of the company and without financial leverage,” he explained.
The luxury industry is one of the pillars of Fondo Strategico Italiano. Last year, FSI acquired a 41% minority stake in the Missoni luxury label, and the investor has other beauty sector stakes in its portfolio. Tamagnini: “With the investment in Lumson, FSI participates in the development and consolidation of the Italian beauty sector, which represents a global excellence in a constantly growing market.”
According to recent data, the Italian cosmetics industry recorded revenues of roughly €11 billion last year, split across over 1,200 companies employing over 200,000 employees. The Italians are at the forefront of the global cosmetics industry, which has been growing at an average rate of around 5% over the past decade.
For Lumson, the deal enables the company to fund its growth plans. The packaging segment of the beauty sector is valued at more than €7 billion for Europe and North America alone, and the firm’s president Matteo Moretti has set his sights on taking a larger slice of the pie than currently is the case. “I’m extremely happy with this partnership. The investment will provide Lumson with new resources to finance its growth, led by R&D and innovation, while leveraging FSI’s expertise and international muscle.” He added that post investment, which includes a capital increase and a convertible bond, Lumson will have no financial indebtedness and a sound capital structure to pursue its ambition.
Moretti and his family have retained a 65% share in Lumson. Paolo Valsecchi has now been named chief executive officer of Lumson, with the five other members of the Board of Directors being: Remo Moretti (Honorary Chairman); Matteo Moretti (Chairman), Giovanni Broggiato (Vice Chairman and CFO); Marco Tugnolo (Investment Director at FSI) and; Carlo Bozotti (Industrial Partner at FSI).
The deal was advised on Vitale & Co., an M&A advisory firm from Milan, part of the IMAP network. Vitale & Co. assisted the Moretti family, from strategy development and due diligence to transaction execution.
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