Platinum Equity, Nestlé JV & Italian PE Deals

In a significant move within the global beverage sector, Platinum Equity has finalized a joint venture with Nestlé, creating a new entity valued at approximately €4.9 billion. This strategic partnership sees Nestlé divest a substantial portion of its bottled water operations, fetching an estimated €3 billion. The newly formed company, headquartered in Paris and to be led by Muriel Lienau, former CEO of Nestlé Waters, will encompass iconic brands such as Perrier, S.Pellegrino, Acqua Panna, and Nestlé Pure Life. This transaction underscores a broader trend of major consumer goods companies optimizing their portfolios by carving out non-core assets, often in collaboration with private equity firms adept at operational improvements and value creation. Platinum Equity, known for its operational expertise and a portfolio valued at over $48 billion, brings a wealth of experience in managing carve-outs and driving growth in consumer and industrial sectors.

The financial backing for this substantial transaction is reportedly being facilitated by a syndicate of lending banks, arranging financing facilities estimated between €2 billion and €3 billion. This debt package represents a leverage multiple of 4-6 times the anticipated EBITDA of the divested water business, a common metric in leveraged finance for such large-scale deals. Platinum Equity's co-chairman Louis Samson and managing director Igor Chacartegui are expected to play key roles in overseeing the integration and strategic direction of the new venture. The deal's structure allows Nestlé to retain a stake while benefiting from Platinum Equity's active management approach, aiming to unlock further potential in these established water brands.

Shifting focus to the Italian industrial sector, Investindustrial-backed Officina Stellare is set to acquire Mavel, a specialized manufacturer of rare-earth-free electric motors. This acquisition, expected to close by October 2026, will see Officina Stellare pay 80% of the purchase price in cash. Mavel, led by CEO Davide Bettoni, is a key player in supplying advanced motor technology for critical applications in avionics, subsea platforms, and unmanned systems. This move by Investindustrial, a prominent European investment firm, highlights its strategy of consolidating and expanding its portfolio companies in high-growth technology niches. Officina Stellare's CEO, Alessandro Franzoni, and chairman, Giovanni Dal Lago, are positioned to integrate Mavel's capabilities, enhancing their offering in the aerospace and defense markets, a sector experiencing robust demand driven by technological advancements and increased defense spending.

In another Italian transaction, Investindustrial is also reportedly acquiring a stake in PA Aromatics from the Montagna Family. This deal, supported by advisors Vitale & Co. and Gatti Pavesi Bianchi Ludovici for Investindustrial, and Intesa Sanpaolo, Legance, and PedersoliGattai for the sellers, signifies continued investor interest in specialized chemical and ingredient manufacturers. The Montagna Family, with Pinuccio Montagna and Riccardo Montagna retaining their leadership roles as chairman and CEO respectively, has found a strategic partner in Investindustrial to fuel future growth. Andrea C. Bonomi, chairman of Investindustrial's Advisory Board, oversees the firm's investment strategy, which consistently targets businesses with strong market positions and significant expansion potential.

Further activity in the Italian private equity space includes Portobello Capital's divestment of Farmol to the German industrial group Dalli Group, owned by the Wirtz Family. Mediobanca advised Portobello Capital on this exit, having originally acquired Farmol for approximately €100 million in 2021. This sale demonstrates successful value realization for Portobello Capital within a relatively short holding period. Separately, Braga Moro Sistemi di Energia has been delisted from the Milan stock exchange following a successful tender offer by its main shareholders, who acquired nearly 98% of the company's shares at €6.91 per share, totaling €21 million. This move signals a shift towards private ownership and potentially a new strategic direction for the energy systems company.