OC&C advises on private equity deals in Italy's fashion industry

05 August 2019 Consultancy.eu

The Italian arm of OC&C Strategy Consultants has in recent months seen two of its private equity clients successfully close a transaction in Italy’s fashion industry. 

At the end of June, private equity firm Cronos Capital Partners acquired a 70% stake in Lampa, a Italian company that produces and distributes plastic and metal accessories such as studs, buttons, logos and jewellery for the high fashion industry. Lampa was founded in 1970 in Grumello del Monte by Diego Bertoli – the father of the current managing directors Mirko and Luca Bertoli. As part of the deal, the founder’s sons have sold a majority stake, and kept a 30% share in the family business. 

With the financial injection, which was financed by French bank Credit Agricole, Lampa aims at pursuing its next stage of growth. Through expansion into new segments / markets and professionalisation of its sales network, Cronos Capital Partners plans to significantly lift its current turnover of around €16.5 million. 

OC&C Strategy Consultants served as the strategic advisor for Cronos Capital Partners, helping the private equity group with commercial due diligence work. The management consulting firm worked alongside RMU Tax Lex (deal structuring), M&A advisors from Deloitte (financial due diligence, tax advisory) and M&A lawyers from Alpeggiani e Associati. 

Cronos Capital Partners + Lampa and LBO France + Bluclad

The Italian arm of OC&C Strategy Consultants formally launched on the 19th of July, after local consultancy and associate partner Long Term Partners joined the integrated partnership of the UK-headquartered strategic consultancy. Long Term Partners was active in Italy since 2012, when a group of former Bain & Company seniors split form the US firm in order to operate independently.

OC&C’s work on the Lampa transaction comes on the heels of another deal which it supported in Italy's luxury fashion industry. Gioconda, the Italian division of LBO France, acquired a majority stake in Prato-based company Bluclad (near Florence). This company specialises in developing chemical solutions for the galvanisation of metal used in the luxury goods sector, mainly for clothing, footwear and luggage. The Tuscan company is one of the market leaders in its specific segment, and provides its products to Italian and foreign luxury companies.

The ramped up financial muscle is being used by Bluclad to expand its footprint in the French market, which is Europe’s second largest luxury fashion market behind Italy. “We believe that LBO France is the perfect partner to launch this new stage of Bluclad’s development,” said Bluclad’s founders Marco Eruli and Leandro Luconi.

OC&C Italy provided buy-side services to Gioconda, focused on strategic work and commercial due diligence. The consultancy similarly worked side by side with Deloitte (accounting and financial due diligence). Dealmakers at the other side of the table where Kon (M&A advisory) and Laroma Jezzi & Partners (legal support).

Bluclad currently books revenues of over €20 million, generated by a team of some 40 employees. The firm aims to accelerate its growth through a combination of organic and inorganic growth. The co-founders have vowed to remain on board to support the realisation of the private equity-backed strategy.