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Campofrio Food Group announced today that it has entered into a binding agreement to acquire 100 percent of the share capital of Cesare Fiorucci S.p.A., owner of Italy's number-one brand of processed meats, Fiorucci. The transaction terms include approximately €170 million in both cash and the assumption or refinancing of reported net financial debt. Additional terms were not disclosed. The acquisition, which is subject to customary closing conditions including antitrust clearance by the Italian authorities, is expected to close before the end of April 2011. The company will be acquired from an ownership group which includes Vestar Capital Partners, members of the Fiorucci family and Fiorucci company management.
Founded in 1850, Cesare Fiorucci is one of the leading players in the Italian processed meats industry and its Fiorucci brand enjoys the number-one position in the domestic market as well as the largest foreign distribution of any Italian deli meats brand. Annual revenues of the company last year were approximately €320 million. In recent years, Fiorucci expanded its core branded business in key international markets, including the U.S., France and the U.K. In addition, the company built its foodservice business, successfully divested certain noncore assets, and introduced a significant number of new products across multiple retail channels.
“Consistent with our announced strategy to invest in leading brands, dynamic geographic and product segments, and companies which can both add value to and benefit from being a part of our Group, the acquisition of Cesare Fiorucci is an important step forward for us,” commented Robert A. Sharpe II, CEO of Campofrio Food Group. “This acquisition will allow Campofrio Food Group to substantially expand our presence in one of Europe's best known deli markets, bring a dynamic product portfolio directly to our existing customers throughout Europe and capitalize on a well-established global distribution network, enabling a key growth strategy for our Group,” he continued. “Thanks to our proven integration skills, we expect this acquisition to be accretive from the first year.”
Giuseppe Mangano, Fiorucci's CEO, said: “I believe that the integration with Campofrio Group is paramount in Fiorucci's growth strategy and will allow the company to further develop its presence in the Italian and foreign markets while leveraging major commercial and manufacturing synergies. The Fiorucci teams look forward to working with the Campofrio Group.”
http://www.campofriofoodgroup.com/portal/page/portal/Campofrio_Food_Group/News/CESARE_FIORUCCI
