EQUITA assisted Arcadia SGR

EQUITA K Finance - Mid-market M&A advisory
Arcadia SGR 700x1050
Arcadia SGR 700x1050

G.M. Leather (GML:IM), an Italian group listed on Euronext Growth Milan and strategic partner for the supply of leathers to leading brands in the luxury (leather goods and footwear) and lifestyle (medium and high-end furniture) sectors, has finalised an agreement with partners Arcadia SGR S.p.A. and Marco Toscano, for a 18.92% investment in Chiorino Technology S.p.A., a manufacturing company, founded in the early 1980s by Lorenzo Chiorino in Biella (Italy) and acquired in 2018 by Arcadia SGR (a leading private equity fund management company operating in the Italian SME segment), specialising in leather processing for the luxury and fashion sectors, in particular focusing on the processing of crust, a material derived from the industrial process of splitting leather.

EQUITA K Finance (Clairfield Italy), part of EQUITA Group, was advisor to Arcadia SGR.

Chiorino Technology boasts among its clients international brands in the fashion industry, particularly active in the leather goods and luxury footwear segments.

Simone Voltolin, Managing Director of G.M. Leather: “We continue our growth path with conviction by entering the share capital of Arcadia as an Industrial Partner. The objective shared with Arcadia, the current majority shareholder of Arcadia, is to re-launch the company by developing all the potential and industrial and commercial synergies that can emerge from collaboration with our Group. This transaction is to be considered important from a prospective perspective and represents an opportunity to diversify and further consolidate our presence in the market segment, strategic for us, of luxury”.

The investment will make it possible to carry out important commercial and industrial synergies with G.M. Leather. In particular, it is foreseen that commercial agreements will be signed regarding the supply by the GM Group of the leathers used in the production process of Chiorino Technology, the use of the sales network and the showroom in Tuscany for the sale of GM Group products, as well as joint participation in trade fairs and events in the sector, with the aim of further strengthening the presence of the GM Group in the luxury segment.

As of 31 December 2022, Chiorino Technology’s sales revenues amounted to Euro 14.7 million (Euro 15.2 million in 2021).

The transaction in a nutshell

2024 01 Tombstone Arcadia Chiorino Technology

The investment will make it possible to carry out important commercial and industrial synergies with G.M. Leather

Client:
Arcadia SGR S.p.A.
Date:
January 2024
Mandate:
Purchase of a minority stake in Chiorino Technology by G.M. Leather
Role:
Financial Advisor
Value:
Undisclosed
Typology:
M&A advisory
Advisor:
EQUITA Mid Cap Advisory

The company

G.M. Leather is a company established in 2011 and is the parent company of the G.M. Group (“The Group”), founded in 1976 by the Marcigaglia Family through the establishment of the companies, currently wholly owned by the Issuer, SNAM di Marcigaglia Antonio & C S.r.l. (“Snam”) and subsequently of Genesi S.r.l. (“Genesi”). The Group, which has been active for more than 45 years and is based in Arzignano (Vicenza) in Italy’s largest tanning district, is a manufacturing company that fully represents Made in Italy through high value-added processing of leather destined for the production of products for the luxury (leather goods and footwear) and lifestyle (medium and high-end furniture) sectors. It operates through 3 sites covering a total of about 25,000 square metres, with a production capacity of more than 3 million square metres of full-cycle finished product leather. Raw material procurement activities (bovine raw hides and semi-processed hides) are carried out by the Issuer and its subsidiary Snam, while higher value-added processing is entrusted to the subsidiary Genesi.