THE INVESTMENT FUND “CHEYNE STRATEGIC VALUE CREDIT” ACQUIRES IRPLAST SPA
THE NEW OWNERSHIP STRUCTURE WILL STRENGTHEN IRPLAST’S GROWTH PROSPECTS ON THEIR INTERNATIONAL MARKETS
The operation will permit IRPLAST to strengthen further its international development strategies. Fausto Cosi remains at the helm in the role of CEO along with Luca de Bartolo as COO. The current management structure has been confirmed.
Empoli (FI), 9th September 2020– The deal, which sees the investment fund Cheyne Strategic Value Credit (SVC) take control of the company has been signed and concluded. Fausto Cosi remains as CEO, along with Luca de Bartolo as COO, and Gabriele Corradi as President of the Board of Directors. Matteo Canti is appointed as Director on the new Board of the company.
The Capital structure is strengthened to support the continuity of growth plans for Irplast as a significant player on multiple international markets. The development plans include investments to optimize the film manufacturing process, which will progressively incorporate raw materials from renewable sources and from plastic-to-plastic chemical recycling, to ensure significant contributions to the reduction of CO2 emissions and to the launch of a total circular economy for packaging solutions proposed.
The new finance entails the issuing of a bond for Euro 39 million, entirely subscribed by Cheyne SVC. Additionally Banca IFIS has prepared a short-term credit line for Euro 20 million, and capital funds invested will increase by a further Euro 3 million, ensuring new liquidity to reinforce the assets of the company. The goal is to maintain the sales growth trend of recent years, and to accelerate further margin enhancement. As a key link in the essential foodstuffs supply chain, Irplast managed not to interrupt its production processes during the Covid emergency, ensuring prompt supplies to match the spike in demand from its customers. The company – which in 2019 generated a turnover of Euro 97.1 million – forecasts to close the financial year of 2020 with some small further growth in sales, and EBITDA of around 12%.
“This operation – announces Fausto Cosi, Chief Executive Officer of Irplast – will allow Irplast to make some key investments which are required for our business development plans, particularly in the area of environmentally sustainable products, and to confirm our position as leaders in the specialty international markets where we compete. The trust and confidence shown by our new investors demonstrate the exciting potential of our company, and represents a very strong stimulus to continue our growth strategy. I must express my gratitude to all the Banks who have been so supportive of the company over the past decade and to the workers and the Trade Unions who have always maintained a constructive atmosphere in our factories in Empoli and Atessa. This belief in our future and the unity of intent has been fundamental in ensuring our survival in the most difficult moments of recent years. And this is the moment to thank Flavio Bini, the founder of our company who has been nominated Honorary President, who had the strategic vision to create many years ago a vertically integrated packaging company, inventing a model which very recently has been replicated by numerous multinationals in the sector”.
“This is a joining of forces born under the best possible auspices – declared Jacopo Rubbia, Managing Director at Cheyne Strategic Value Credit. The defining characteristic of our fund is the development of flexible financial resources aimed at supporting and relaunching companies with a strong industrial base. This investment strategy matched perfectly with Irplast, a company with outstanding products that have significant and immediate growth prospects, and guided by an expert management team whose results so far amply demonstrate their capabilities”.
The Irplast debt restructuring was facilitated by Credito Fondiario S.p.A. acting as Master Servicer, Special Servicer, Corporate Servicer, Calculation Agent and Paying Agent in the context of the securitization of the financial operation.
Irplast received assistance from Denton’s for all legal matters and received guidance from Deloitte as their financial advisor. Cheyne SVC and Credito Fondiario S.p.A. were assisted in their legal requirements by the advisor Studio Chiomenti.
About IRPLAST S.p.A.
IRPLAST S.p.A. is a vertically integrated producer, from film production to printed finished products, with a business model focussed on sustainability and on the reduction of the environmental impact of the company and its products. The environmental agenda of the company started with investments to reduce packaging weights and thicknesses, then evolved with packaging solutions designed to use less material (like the multi-packing bundles which reduce by over 66% the plastic used in polythene hoods), and has led to innovative investments in energy cogeneration and production waste management to reduce the GHG emissions of both production and products. Over 380 people are employed in the three manufacturing sites, all based in Italy. In Empoli (Florence), the factory has a production capacity of over 500 million square metres of printed products, while the two film manufacturing sites in Atessa (Chieti) have a total installed capacity for 44,000 tonnes of BOPP film. The company generated a turnover in 2019 of Euro 97.1 million, with an EBITDA of 10%. Over 75% of total output is exported to various countries worldwide.
About Cheyne Capital and Cheyne Strategic Value Credit
Founded in 2000, Cheyne Capital is a London-based alternative investment fund manager. Cheyne is known for its innovative approach and has been early and successful at delivering value to investors from important dislocations in the market place. Today Cheyne is one of the largest providers of European Real Estate Debt and has developed an Investment-Grade & Crossover Corporate Credit programme that has generated net annualised returns of 13% since its inception in 2002. With an investment philosophy grounded in rigorous fundamental analysis, the firm’s other areas of expertise are Strategic Value Credit, Social Property Impact and Equity-Linked investing.
Cheyne Strategic Value Credit was established in 2017 as a new investment division within Cheyne Capital and employs a value-oriented, opportunistic approach to investing in European sub-investment grade corporate credit. Led by CIO Anthony Robertson, the group focuses on providing constructive capital solutions to financially constrained businesses, working on a consensual basis with corporate management teams and shareholders to affect a positive turnaround. The group is currently deploying its inaugural European Strategic Value Credit Fund that closed at a hard cap of €1 billion in June 2019.
Cheyne Capital Management (U.K.) LLP is authorised and regulated in the U.K. by the Financial Conduct Authority, and registered as an Investment Adviser in the U.S. by the Securities and Exchange Commission. Cheyne is a signatory to the United Nations-supported Principles for Responsible Investment (PRI), a member of the Alternative Investment Management Association (AIMA), a founding member of the Alternative Credit Council and one of the initial signatories to the Standards Board for Alternative Investments (SBAI).