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US Vestar buys Italian cured meats producer and marketer Fiorucci

US Vestar Capital Partners has signed a definitive agreement to acquire Cesare Fiorucci, an Italian producer and marketer of cured meats and other gastronomic products, from the Fiorucci family in a €360m management buy-out transaction.

Fiorucci, founded in 1850 by the Fiorucci family, announced 2004 sales of approximately €360m. The company targets the premium end of the market, selling its products in both the retail and foodservice segments in over 40 countries worldwide. Fiorucci's products are marketed under the Fiorucci brand as well as under the Fiordicotto, Suprema, Suillo, Norcinetto and Rostello brand names.

The Fiorucci family has owned the business for over 150 years and will reinvest in the buy-out. Following the transaction, the family will hold an approximately 25 per cent ownership stake, other management members will jointly own up to 20 per cent, while majority shareholder Vestar will end up with approximately 55 per cent.

Vestar first approached the Fiorucci family three years ago but at the time the family did not want to make a decision. Having abandoned the idea of an IPO, however, Fiorucci chose Vestar's offer over the offer of another bidder.

Robert Rosner, president of Vestar Capital Partners Europe, said, 'With more than 150 years of industry leadership, Fiorucci represents a very attractive investment opportunity for our firm. Our investment in Fiorucci is perfectly consistent with our firm's targeted investment strategy - backing solid, longstanding companies with leading market positions, run by experienced management teams who have the passion to be both owners and operators of their business.'

Vestar is 'entering the capital of Fiorucci with a long term investment horizon and will provide Giuseppe Mangano and his management team with substantial capital resources to back the company's growth plans, which include broad international expansion in markets such as the US, development of new product categories and selected complementary acquisitions,' Rosner added.

The transaction is expected to close in the first quarter of 2005, subject to receipt of regulatory approval and other customary conditions.

Vestar, with worldwide headquarters in New York and European headquarters in Paris, specialises in management buy-outs, recapitalisations and growth capital investments. The firm's investment strategy is targeted towards middle-market companies in the US and Europe with valuations in the $200m to $2bn range.

With the acquisition of Fiorucci, Vestar will have invested over $500m of equity in European buy-out transactions in the past three years. Vestar is expected to raise a new large global fund, the firm's fifth fund, and open another European office later this year.

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